Quote from: hatshepsut93 on June 16, 2019, 11:12:18 PM

governments don't make any demands to companies telling them what to produce and in what quantities.

Well, that's not entirely accurate. Many governments have production policies that establish quotas that they will subsidize. A good example is the European Union Common Agricultural Policy (CAP)

https://en.wikipedia.org/wiki/Common_Agricultural_Policy

Can you produce over this quota (if you're not a beneficiary of these subsidies)? Sure you can, but you will be in a clear disadvantage with everyone else as your effective production costs will be considerably higher.