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In a free enterprise system how does competition among businesses benefit consumers?
Wiki User
∙ 7y ago
by lowering prices
Leone Wisozk
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Since the free enterprise system guarantees that there will be competition in business what benefit does competition have for consumers?
Competition forces businesses to produce goods at a price people can afford-----(novanet)
How consumers benefit from competition among businesses?
competition leads to lower prices
How do you use the word cartel in a sentence?
Cartels are illegal because they prevent healthy competition. Consumers benefit when there are a lot of businesses offer various products.
Why do governmental laws seek to restrict monopolies and cartels benefit consumers and businesses?
To prevent inflation growth.
Can economic decisions benefit consumers in a free enterprise economy than in a command economy?
Economic decisions can benefit consumers more so in a free enterprise economy rather than in a command economy. This is so due to the fact that the free enterprise economy focuses on production and distribution being privately owned. This also allows the ability to allow products and services to be on a supply and demand basis.
Can the oligopoly market structure benefit both consumers and businesses by forging common standards in industries that experience rapid technological change?
The oligopoly market structure can benefit both consumers and businesses by forging common standards in industries because it would provide fewer sellers and more purchasers, which would mean lower prices for everyone and higher profits for the businesses.
Why do consumers benif from businesses having to compete?
The benefit to the consumer with competition is usually a larger selection for a particular product with perks such as lower pricing and/or rebates. Aside from that prospect, the ability to have a selection based on brand preference is a great attribute for the consumer. Consumers do benefit from competition of how the store/resto/mall, makes some promos or other good things that could capture the consumers. and also by improving their business for the good of the consumers, that could gain their trust and support.
Why does the us have a modified free enterprise economy?
To prevent "evil monopolies" and to protect the rights of workers. Also to fulfill the needs of public goods and to promote and to encourage competition for the benefit of society.
Who benefits and hurts when the dollar falls against the euro?
What the dollar falls against the Euro American stockholders and American businesses benefit. This type of occurrence hurts the American consumers.
What is institutional deviance?
"when government is run by the few for the benefit of the few,when businesses supposeldly in competition fix prices to gouge the consumers, when criminal justice system is biased against the poor and people of color, then society is permitting what is called institutionalized deviance" (Doyle and schindler, 1974 :13)
Consumers use cost benefit in order to maximize what?
Consumers use cost-benefit analysis in order to maximize utility.
What does co op mean in sales and marketing?
co-op - a jointly owned commercial enterprise (usually organized by farmers or consumers) that produces and distributes goods and services and is run for the benefit of its ownersA cooperative
