Free market economies do not have some central planning office which designates how many cars, hair curlers and squirt guns are to be made. Yet there are rarely/never shortages of any one product as a result of another product being over-produced. Nobody sets prices of goods, yet the price never goes so low that a good goes into shortage nor never goes so high that a good isn't produced. Companies that are valued by the economy stick around and those that aren't don't. There is no central office that decides to open and close companies that participate in a free market. They do so of their own accord. Yes, there are intelligently acting agents within the economy. But there is no central agency that dictates the activities of the economy or designs its composition. Those cases in history in which the economy has been centrally controlled and its composition has been designed were, as you likely know, complete failures. This is a follow up to my last question: http://answers.yahoo.com/question/index;_ylt=AkoiXRKyXhF.PDnrKYn.N8nsy6IX;_ylv=3?qid=20080724104735AAyergf