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Competition

Competition. What is competition?. The struggle between companies for customers (old and new) Competition forces businesses to produce higher-quality goods at reasonable prices. Also encourages new and improved products. Forces businesses to operate efficiently. Low price = High profit.

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Competition

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  1. Competition

  2. What is competition? • The struggle between companies for customers (old and new) • Competition forces businesses to produce higher-quality goods at reasonable prices. Also encourages new and improved products. • Forces businesses to operate efficiently

  3. Low price = High profit • The skill in competition is the balance between keeping prices low enough to attract customers and high enough to still turn a profit. • This forces businesses to keep the cost of production as low as possible. • Competitors are successful because they are able to produce at a price the average customer can afford.

  4. Competition and Market Structure • Competition is determined by the number of buyers and sellers in a particular market • Market structures are determined by the success or failure of competition in particular markets.

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