ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Competition among sellers lowers costs and prices, and encourages producers to produce more of what consumers are willing and able to buy. Competition among buyers increases prices and allocates goods and services to those people who are willing and able to pay the most for them.

Detailed explanation-2: -Competition among sellers encourages producers to supply more of what consumers value most. As their price falls, producers increase their quantity supplied and consumers increase their quantity demanded. If a price floor is set above the equilibrium price, a permanent surplus results.

Detailed explanation-3: -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.

Detailed explanation-4: -Healthy market competition is fundamental to a well-functioning U.S. economy. Basic economic theory demonstrates that when firms have to compete for customers, it leads to lower prices, higher quality goods and services, greater variety, and more innovation.

Detailed explanation-5: -More competition usually means a reduction in supply, while less competition gives the producer a opportunity to have a bigger market share with a larger supply.