ECONOMICS
ECONOMIC SYSTEMS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
fewer people will be buying the product.
|
|
|
competitors see the opportunity and enter the marketplace.
|
|
|
fewer people will produce the item.
|
|
|
fewer people will buy the item.
|
Detailed explanation-1: -The entry of a new competitor in a market tends to reduce the market prices. When there are more companies competing for the same market share, customers choose those with lower pricing, and the general price level goes down.
Detailed explanation-2: -In a competitive market, no single consumer or producer has the power to dictate the market. A perfectly competitive market is an ideal market where there are many well-informed buyers and sellers, no barriers to market entry and no possibility of a monopoly.
Detailed explanation-3: -Competition signals strong consumer demand, which validates the existence of your business. It also gives you an opportunity to popularise emerging trends that will get consumers excited about your work.
Detailed explanation-4: -Competition in America is about price, selection, and service. it benefits consumers by keeping prices low and the quality and choice of goods and services high. Competition makes our economy work. By enforcing antitrust laws, the Federal trade Commission helps to ensure that our markets are open and free.