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Competition typically drives prices down as businesses strive to attract customers by offering better value than their rivals. When multiple companies offer similar products or services, they may lower their prices or enhance quality to gain market share. This dynamic encourages innovation and efficiency, benefiting consumers. However, in less competitive markets, prices may remain high due to a lack of alternatives.
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What effect does lack of competition in command economies?
very high prices
A major characteristic of monopolistic competition is that prices will be .?
higher than in perfect competition
How do consumers benefits from competition among business?
competition leads to lower prices
What happens if competition decreases in a certain industry?
Competition helps to keep the quality high and prices down. If competition decreases, the quality can go down and the prices can go up in that industry.
What is price competition?
Intense competition in which competitors cut retail prices to gain business
What effect does lack of competition in command economies?
very high prices
What was one long-term effect of high U.S. tariffs?
The long term effect of tariffs and other trade barriers are that eventually the prices will increase. The reason that prices increase is that the competition for that business is decreased.
What effect did the guilds have on competition and prices?
Guilds had effect on Competition and Prices because they were skilled like that. Also they price different things like a craft guild, for example, he makes weaves and paintings and sells them for the Holy Roman Catholic Church. Merchant makes competition because he makes things that people in everyday life need.
What is a negative effect of government regulation?
they cut into company profits, they stifle competition, they cause higher prices for consumers.
What is consider a negative effect of governments regulation?
they cut into company profits, they stifle competition, they cause higher prices for consumers.
Why did some people believe that lack of competition would hurt consumers?
Theoretically, competition keeps prices low because various firms vie for the business of consumers. When they compete, they attempt to win a larger market share by lowering prices. Therefore, if competition is lacking, prices will increase. Take a monopoly for example. No competition means they can set really high prices.
A major characteristic of monopolistic competition is that prices will be .?
higher than in perfect competition
How consumers benefit from competition among businesses?
competition leads to lower prices
How do consumers benefits from competition among business?
competition leads to lower prices
A major characteristic of monopolistic competition is that prices will be _____.?
higher than in perfect competition
What happens if competition decreases in a certain industry?
Competition helps to keep the quality high and prices down. If competition decreases, the quality can go down and the prices can go up in that industry.
What methods did ruthless business operatorues ues to eliminate their competition?
Ruthless business people would lower their prices to put their competition out of business. Once their competition was gone, they would raise their prices.
