Is a benevolent command economy likely to achieve greater efficiency than a purely competitive market system? Explain.

What will be an ideal response?

No. The market system, by itself, will tend to result in allocative efficiency, thus solving the economic coordination tasks of the economy automatically. A command system cannot improve upon the market; the best it could achieve is efficiency as great as the market. Because the motivation of self-interest in allocating resources in a command economy is not as keen, the result is likely to be far from efficient.