How is profit distributed in a command economy?

In a command economy, profit distribution is determined and controlled by the central authority or government. The primary objective of a command economy is to achieve social and economic goals set by the government, rather than maximizing individual or private sector profits. Therefore, profit distribution in a command economy is typically directed towards fulfilling the government's priorities, such as funding public services, infrastructure development, social welfare programs, and investment in strategic industries.

The government may allocate profits to finance education, healthcare, defense, and other essential sectors to ensure the well-being of the population. Additionally, profit distribution in a command economy may also involve reinvesting profits into state-owned enterprises or directing them towards research and development activities to promote technological advancements and economic growth.

In a command economy, the government plays a central role in determining the allocation of resources and the distribution of profits. This approach aims to reduce income inequality and ensure that the benefits of economic activities are shared among the population, rather than being concentrated in the hands of a few individuals or private entities. However, it is important to note that the effectiveness and fairness of profit distribution in a command economy can vary depending on the specific policies and practices implemented by the governing authority.