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Competition among firms promotes operational efficiency and production of goods that the consumers value.” Agree or...

Competition among firms promotes operational efficiency and production of goods that the consumers value.”

Agree or disagree with this statement. Please provide a rationale for either option.

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Answer #1

Answer : I agree with the statement as competition is way of achieving production efficiency and good quality product to the customers .

Key benefits of competition are :

  • It helps in creating lower price and greater choice among consumers.
  • Greater variety of the product to there customers.
  • In order to grab Maximum share of the market they provide better product with higher quality.
  • Consumer recieves the best price for product available.
  • Competition encourage improvement in the product as well as help in adding unique features
  • To compete with their competitor ,new and improved product.
  • Wider variety of product is available to the consumers.
  • Production of output has been increased
  • Optimum utilisation of available resources

Crux : Competition helps in ensuring lower price ,better choice for consumers. It encourage efficient in the market.

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