Prices and Profits
An indispensable condition for enterprise profit to be indicative of efficiency is that prices must be rational, in the sense of reflecting cost-preference relations. This has hardly been the case in the Socialist countries, and certainly it was not so before the economic reforms. In each country price determination was highly centralized — it was vested in the hands of the Council of Ministers and the State Price Planning Commission.
KeywordsProducer Price Price System Price Determination Socialist Country Retail Prex
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