In a command economy, enterprises have little incentive to control costs and be efficient, because they cannot go out of business.

Question

Quizplus · Accepted Answer

In a command economy, enterprises are often owned and operated by the government, meaning that they do not face competition or the possibility of going out of business. This can lead to lower efficiency and cost control, as there is little incentive for these businesses to improve and innovate.

In a Command Economy, Enterprises Have Little Incentive to Control