ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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.

Detailed explanation-2: -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-3: -Disadvantages for Businesses Competition in business decreases an individual companies market share and shrinks the available customer base, especially if demand is limited. A competitive market can also force lower prices to stay competitive, decreasing profit margins for each sale or service.

Detailed explanation-4: -Competition therefore increases a country’s attractiveness as a business location, triggering national and foreign investments. It also delivers benefits for consumers through lower prices, improved services and greater choice. In this sense, competition generates total consumer welfare.