Competition is very important in a free market system because it helps drive prices down which in turn increases sales. For example, there was a gas station where I live that was able to charge $.05 to $.10 per gallon more for gas than the next town because they didn't have any competition. Customers would rather pay a bit more because of the convenience of it. When a competitor built a gas station across the street, the gas prices went down because both companies were trying to attract the same customers. When there is competition, the customer wins.
Competition is important because it is a mechanism for driving out inefficient producers. Competition forces producers to lower prices.
The following statement best describes the relationship between competition and a free market system: Competition increases within a free market system.
The Free Market system is designed for competition.
C. Without competition, people wouldn't have a lot of choices.
C. Without competition, people wouldn't have a lot of choices.
Unrestricted competition
Without competition, people wouldn't have a lot of choices
Without competition, people wouldn't have a lot of choices
Without competition, people wouldn't have a lot of choices
The following statement best describes the relationship between competition and a free market system: Competition increases within a free market system.
The Free Market system is designed for competition.
C. Without competition, people wouldn't have a lot of choices.
C. Without competition, people wouldn't have a lot of choices.
Unrestricted competition
The laws of supply and demand are the most important factors in a free-market system.
Competition and self-interest are two forces in free market economies.
Competition and self-interest are two forces in free market economies.
The profit motive undermines competition unless competition is protected.