Advantages of planned economy, Managerial Economics

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Advantages of Planned System

i)   Uses of resources:  Central planning can lead to the full use of all the factors of production, so reducing or ending unemployment.

ii   Large scale production:  Economies of scale become possible due to mass production taking place.

iii.   Public services:  "Natural monopolies" such as the supply of domestic power or defence can be provided efficiently through central planning.

iv)   Basic services:  There is less concentration on making luxuries for those who can afford them and greater emphasis on providing a range of goods and services for all the population.

v)   There are less dramatic differences in wealth and income distribution than in market economy


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