Advantages:

i. Greater economic efficiency: the government ensures that resources are allocated to those sectors where they can be used most productuvely. Therefore, production efficiency is greater than under capitalism.

ii. Absence of Wasterful Competition: Duplication of goods and services or use of resources on extensive advertisement campaign is avoided.

iii. Less Inequality of Income: Every member of the society is taken care of within the limits of their relative capabilities and the overall resources of the state.

iv. Exploitation of Private Monopoly if avoided: State monopoly exists only to promote overall welfare of the people.