ABSTRACT
The efficiency of Yugoslavia's socialist economic system depends both on successful planning and on the successful functioning of the market mechanism. The diverse forms of individual markets and the various kinds of competition provide suppliers and buyers with varied economic possibilities, on account of which the process of the price formation on these markets also varies. The importance of competition in retail trade is even greater in view of the fact that it provides the key to the solution of a whole host of other problems. In the Yugoslav economic system the role of entrepreneurs is played by the managements of enterprises. Since an enterprise is managed by the working collective, the entrepreneur is the collective itself. Theoretically and practically, in Yugoslavia there are only two reservoirs available to cover such losses–social property and private property.
