Organized in a hierarchical manner
Minimum price set at the level of average cost
Market forces play little or no role
Allocation of resources determined centrally
No profit motive
Directly manages all factors of production
Economic decisions made by the central authority
Central planning of production, distribution, and pricing
Objective to achieve social goals, not profits
Non-market based resource allocation
Owns all means of production
Monopolistic structure
Yields little consumer choice