USA HISTORY

Detailed explanation-1: -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-2: -The main benefits of competition policies include increased product quality, more options, low prices, and innovation. The main disadvantages of competition policies include shrinking businesses’ market share and surplus of production.

Detailed explanation-3: -From a microeconomics perspective, five factors (product features, number of sellers, barriers to entry, information availability, and information) can affect competition. When a company has a unique product that no other company is selling, a monopoly exists, as there is no competition.

Detailed explanation-4: -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.