Command economies are able to achieve greater allocative efficiency than market economies.

Question

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In command economies, decisions regarding resource allocation and production are made by a central authority rather than by market forces of supply and demand. This often results in inefficiencies due to a lack of competition and incentives to innovate. Market economies, on the other hand, allow for competition and price signals to direct resources to their most efficient uses, resulting in greater allocative efficiency.

Command Economies Are Able to Achieve Greater Allocative Efficiency Than