What is a major disadvantige of a centrally planned economy

Business

1 answer:

cupoosta [38]3 years ago

6 0

Answer:

Lack of competition

Explanation:

A centrally planned economy lack competitiveness. The government decides what to produce, the price, and the distribution channel. Because of these restrictions, there is no motivation for profits. Without competition, a centrally planned economy will have the following features.

There be a lot of inefficiency and wastefulness.
Consumers will not have a variety of goods and services to choose from in the markets.
Businesses will make low profits.

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