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A) Describe a typical commune of the 1960s. In the 1950s the Communist government organized 800 million rural people into about 52,000 people's communes. The communes received production targets from the state and ensured that these targets were met. Each commune was divided into about 16 production brigades, which were further divided into about 7 production teams usually consisting of 100 to 250 people. Each level above the individual could hold land, tools, and other production materials under communal ownership, and …

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…output on the free market. A major limitation of this system is its difficulty in achieving economies of scale. This refers to the economic principle that an individual household produces a smaller amount than a larger farm, but has some of the same basic expenses (for plows, for example) and therefore has a higher relative production cost. On a voluntary basis, some households have organized themselves into groups for product processing, marketing, and regional cooperation.