competween producers helps keep prices down in this type of economy?
market
In a market economy, the competition between producers helps keep the prices down. This is an economic practice that is based solely on supply and demand.
market
marketing
1. Competition fosters efficiency because producers have to offer the best products at reasonable prices.
Free market
In a market economy, the competition between producers helps keep the prices down. This is an economic practice that is based solely on supply and demand.
market
under a free market economy and perfect competition, model, producers are forced to produce at the lowest possible cost (productively efficient) to gain customers.
marketing
1. Competition fosters efficiency because producers have to offer the best products at reasonable prices.
Free market
Prices, Demand, Personal Preferences and Productions.
Chad Syverson has written: 'Prices, spatial competition, and heterogenous producers' -- subject(s): Equilibrium (Economics), Prices
Quickly dropping prices may be a sing of cut-throat price competition between businesses. Such competition will drive many entities out of business and create higher unemployment. Newly unemployed people will spend less, crating even greater price competition. And so on.
Lower prices.
The similarities between command economy and market economy include the following: both have - producers, consumers, retailers, goods, services, prices, incomes, distribution, money, labor, capital, technology,
b. Shortages always raise prices and surpluses always reduce prices until competition produces a price where there are no more surpluses or shortages. ;D