The Faktorallokation describes the distribution (Allokation) of units (factors) of the economy of an economic area in the economic science.
In a planned economy a central committee decides on it, which enterprise gets like many coworkers, like many funds for machines, devices, mechanism and ready stand, and so on. In a free-market economy this process is automated over the net yield: Ranges also too little competition throw high profits off and tighten therefore competitors, investors and reinvestments of the profits. Ranges also too much competition throw against it small profits off so that some enterprises of losses make and sometime the market abandoned.
With the optimization of the Faktorallokation in the broader sense it is also e.g. guaranteed that the sizes of company correspond to the requirements of the respective market - for some ranges many small enterprises are optimally, for other few large, sometimes can also a mixture from large and small enterprises be favourable.
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