How would an increase in competition affect economic efficiency?

Posted by admin on February 15th, 2010 and filed under competition | 4 Comments »

I realise that it would increase it (e.g. Perfect competition vs Monopoly) however what specific points can be made?

More competition, the more the consumers benefit and buisness have to do there best. Thats why capitalism suceeds.

4 Responses

  1. americanarrayan Says:

    More competition, the more the consumers benefit and buisness have to do there best. Thats why capitalism suceeds.
    References :

  2. J.O-Blaze Says:

    If company A’s prices are much cheaper than company B’S it may drive people to buy something they may not have, just because of the deal they are getting.
    References :

  3. amy Says:

    hmmm….haven’t taken economics in a while…

    but if competition increases, this will drive prices down while at the same time giving the consumer more of a choice.

    since prices are now lower, consumers will purchase more product. eventually this will stabilize the price.
    References :

  4. double bungalow Says:

    In the energy sector, if there were more competition on the supply side, if everything wasn’t weighted to coal/oil/nuke and if the other players …solar, wind, geothermal, tidal had a shot, it would make for a more efficient and durable model for energy.

    But thinking that way would mean having an energy policy… not just eternal fealty to oil/gas/nuke.
    References :

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