GENERAL KNOWLEDGE

Detailed explanation-1: -Price Competition-A type of rivalry between or among businesses that focuses on the use of price to attract scarce customer dollars.

Detailed explanation-2: -Economists call the struggle among producers for the dollars of consumers, competition. Self-interest is the motivating force and competition is the regulating force of a free market.

Detailed explanation-3: -How does competition among too few sellers affect price? Too few sellers may keep a price above the level that would be set by competition. Since there are not a lot of that item available, the price of that item will be higher since there is a shortage of it.

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.