sentences:  In his American Economic Association presidential address, Taylor (1929) laid out the conditions under which a socialist economy could in theory achieve an efficient allocation of resources.The conditions parallel those of a private-enterprise economy.They include the state providing money income to its citizens, citizens using their income as they choose to buy output produced by state enterprises, and the state setting prices equal to marginal cost so as to compensate factors of production, including labor, with prices set by trial-and-error to clear markets.