Question

Common market advantages disadvantages

Answer 1

Advantages

A common market contract is profitable if you're selling products in surplus, and saves money if you're buying products in shortage.

Disadvantages

A common market contract is less profitable if you're selling products in shortage, and could cost more money if you're buying products in surplus. A big disadvantage is that a common market is not as automated as it seems. Production contracts above the common market minimum must be manually offered, and all contracts must be manually accepted.

A crucial issue are common market contracts for country consumption. It's cheapest for a country to purchase its supplies at 100 quality. There is no benefit for a country to consume higher quality products. But if a country buys its supplies from a common market, most of them will be at a quality above 100. That means the country would be wasting money by buying its supplies from a common market. It's almost certainly cheaper for the country to buy its supplies from the open market, with an automated setting of 100 quality.