Proﬁts are the primary "success indicator" for ﬁrms in a centrally planned economy.

Question

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In a centrally planned economy, profits are not the primary success indicator for firms. Instead, the government sets production targets and allocates resources, with the goal of achieving overall economic growth and development. Firms may still be rewarded for meeting these targets and contributing to the economy, but profit maximization is not their main objective.

Proﬁts Are the Primary "Success Indicator" for ﬁRms in a Centrally