Explain the importance of competition among firms

Explain the importance of competition among firms - Explain...

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Explain the importance of competition among firms. Well given the capitalistic society that we live in, competition is quite important. Without competition between various companies and or firms there would be no drive for the need to create a better product for the consumer. Lets say widgets were only being produced by one supplier, then that company would never have to face the need to compete with any other company in the industry, therefore setting the price for the markets worth without fear of having to compete. If everyone needs a wiget, and there’s only one person supplying those widgets, that person can feel free to inflate that market value as they see fit. Competition keeps market prices down and also gives the consumer variety. Also, competition has a way of generating new innovations and improvements on existing products. Explain whether the competitive environment in this industry benefits society or not. I would have to say no, this specific example of industry in my opinion really
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Explain the importance of competition among firms - Explain...

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