Why is competition important in a market economy

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Hi,
In short: To get better products, cheaper products, with higher quality.  
Best regards,

Love is the battery of life....

According to my understanding of classic economic theory, in a market economy, it is only through competition that the true price of anything can be determined.  If there is too much of something and/or too little demand the price will drop. If something is scarce and/or there is a great demand, the price will rise.  Also, if I produce something that is cheaper, and of better quality than my competition it will force my competitors to either improve their product or cut the price, or both, or go out of business. In actuality, however, there really is not a true market economy in the world today.  Government subsidies, protective tariffs etc make it impossible to say in all honesty that we are living in a free market economy.

Competition is the reason why innovations and enhancements to certain products or services happen.  Marketing your product always involves competition with other company.  web design marketing has been known to be a cost effective way of advertising your products and service.

 

Pits one against another causing competition, may the best man/woman win.

coz it dose so get over it and get black ops

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