![]() ![]() If profit is made, the greater part of it goes to the person who owns the means of production. Each person will have to create value for themselves. Capitalists believe in private ownership of land, resources and means of production. All decisions made should contribute to what is good for the community. Wages will also be the same for everyone. All decisions are ideally made by the entire community, through democratic techniques. The same applies to decision-making regarding these means of production. In reality, they will experience little of this possession. All land and resources that contribute to any production process then belong to everyone. In communist systems, the state owns all vital resources and means of production. The main difference between communism and capitalism is who owns product means or resources. The main differences between capitalism and communism are described below. It caused extreme polarization worldwide. Societies and nations that adhered to these forms regularly clashed with each other, for example in the Second World War. Where capitalism is highly individualistic, communism puts the interests of society first. The two perspectives represent two opposite ways of thinking. The communist socio-economic system is in many aspects diametrically opposed to the capitalist socio-economic system. ![]() Stable determinants are then assumed such as income, taste, preferences, price of substitute goods, price of complementary goods, etc. The above demand chart, shown as a curve (line), represents the amount of products that consumers are willing to buy at different prices.
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