Features of planned economy, Managerial Economics

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Features of Planned Economy

The command economies relies exclusively on the state.  The government will decide what is made, how it is made, how much is made and how distribution takes place.  The resources - factors of production - on behalf of the producers and consumers.  Price levels are not determined by the forces of supply and demand but are fixed by the government.

Although division of labour and specialisation are found, the planned economies tend to be more self-sufficient and tend to take part in less international trade than market economies.


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