Characteristically, Command Economies are bad when it comes
to a person interested in making a profit; this is because they
typically center on economic equality and do not have economic efficiency. Speaking
in general, in a command economy, the allocation of resources is done by a
Central Planning Committee, and this system usually leads to quite a number of
shortages and/or surpluses in products since the demand/supply can be impulsive.<span> On the other hand, Market Economies are centered on profit-making
and Economic Efficiency.</span>
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Essentially, how well resources are distributed among the
public will determine how well people will be rewarded. Let’s take for instance,
a parking lot like downtown; characteristically, a market economy will likely focus
on how to place as many cars as possible in the lot and how to use the space to
its full capacity, while a Command will most likely try to apportion the space
so that (just for example) 3 small, 3 medium and 3 large vehicles are parked (economic
equality).
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<span>Finally, with a market economy, there is likely to
to be less shortages and less surpluses, since it works with the Law of Supply
and Demand in which an equilibrium price will be automatically established
through buying and selling.</span></span>
