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Collectives in the Soviet Union avoided competition that drives a free marked economy in multiple ways. Production was centrally planned, and compensation was not related to production. Firms and individuals were given quotas which were to be met and were allocated endowments to meet those quotas. People could not set the price of goods because there was no price, and there was no competition between firms because quotas were handed down by the state, not by demand.

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Eve Ryan

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2y ago
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9y ago

Collectives in the Soviet Union avoided competition that drives a free marked economy in multiple ways. Production was centrally planned, and compensation was not related to production. Firms and individuals were given quotas which were to be met and were allocated endowments to meet those quotas. People could not set the price of goods because there was no price, and there was no competition between firms because quotas were handed down by the state, not by demand.

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Q: How did collective in the Soviet Union avoid the competition that drives a free marketer economy?
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