Question

how does competition affect producers and consumer?

Answer 1

The competition affects the market on several ways, being this element a regularizing factor that brings innovation, low prices and other benefits.

A market with a healthy competitive environment encourages the producers and sellers search for different ways to gain the consumers attention. They can offer better quality products, or giving a wider offer with a best relationship between price and quality. The companies not only seek to improve their products but also they want to develop their own business identities.

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