That doesn't mean it was profitable. The price could have been set for political reasons. Or it could have been set by the marginal cost of the launch, ignoring entirely the development cost that was written off when the USSR collapsed. Or it could have been enough to simply pay for the weight of the astronaut in a rocket that was going up anyway, like a hotel will sell rooms at a deep discount just to not lose as much money if it cannot otherwise. If communism produces goods and services cheaper than the free market, we'd be awash in Soviet goods.
The US government produces goods and services at "cheap" prices, but the losses are made up for by the taxpayer.
> which can often be less efficient than alternatives
I'd like to see a case of that.