As per question of economics CMD is about the COMMAND THEORY -
wherein the government decides the whole economic functioning of
the economy as what , how much and at what price goods should be
produced ,even the income and Investments also of the economy
Limitations -
- As no such Competition so level of INNOVATION IS HINDERED , as
government regulates prices so firms will not care to compete
anyways
- Depends on government makes the people at large from all fields
,tend to will be more risk averting ,killing creativity and a path
of development
- INEFFICIENCY is main part or feature observed with nation given
public sector more importance as if state will also regulate income
so to people will get no motive to show extra , making resources
underutilized
- Hampers industrial growth, for industry to flourish freedom is
required as licensing, taxes, other regulations when is bound to be
followed as rule of nation will not let industry grow
Conclusion
:
These are more of role of government to manage all ,making
welfare as motive , the zeal to succeeds get buried
NOTE - CMD as given under Economics I told about this theory
otherwise it's a COMMAND PROMPT , which actually is used in
computer
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doubt