Why are command economies usually less efficient than market economies? Governments in command economy countries are uninterested in prices or quality. Command economies become too ruthless to care about the consumer. The competition in market economies encourages both quality and low prices. Governments in market economy countries demand efficiency in their firms.
One major reason why command economies are usually less efficient than market economies is that "The competition in market economies encourages both quality and low prices," since it is often impossible for the government to "predict" the demand for all products and services.
