Problem
In the Lange model, firms are inn by state-appointed managers called Red directors, not private owners. They are supposed to follow the rule of producing until marginal cost equals price, rather than maximizing profits. Does this cause "moral hazard"? Are the dangers the same as those of other kinds of state administration? Compare.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.