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Why are command economies usually less efficient than market economies? Governments in command economy countries are uninterested in prices or quality. Command economies become too ruthless to care about the consumer. The competition in market economies encourages both quality and low prices. Governments in market economy countries demand efficiency in their firms.

Craig Stewart

in Social studies

1 answer

1 answer

Craig Stewart on March 6, 2018

One of the main reasons why the order of the economies in general are less efficient than market economies is that "competition in market economies, enhances quality and low prices," as it is often impossible for the government to "predict" the demand for all products and services.

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