How are resources allocated in free market economy?

In a free market economy resources are privately owned, the decisions regarding what to produce or how much to produce, how to produce and for whom to produce are taken by private producers through market forces. Profit is the main motive of carrying out various activities. The government has little role to play in the functioning of the economic activities.

In a free market economy resources are privately owned, the decisions regarding what to produce or how much to produce, how to produce and for whom to produce are taken by private producers through market forces. Profit is the main motive of carrying out various activities. The government has little role to play in the functioning of the economic activities.