Asked by Emily Huber on Jun 10, 2024
Verified
What conditions are necessary for economic competition to exist?
Economic Competition
A condition in markets where businesses or sellers independently strive for consumer's dollars by offering the best possible terms, leading to efficient resource allocation.
- Identify conditions necessary for competition and its role in economic efficiency.
Verified Answer
ZK
Zybrea KnightJun 14, 2024
Final Answer :
Broadly defined, competition requires two or more buyers and two or more sellers acting independently in a particular product or resource market. (Usually there are many more than two buyers and two sellers.)Also, necessary is the freedom of sellers and buyers to enter or leave (exit)markets, based on their economic self-interest.
Learning Objectives
- Identify conditions necessary for competition and its role in economic efficiency.
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