Competition

Front

What is competition?

Back

Competition is the rivalry between two or more parties to achieve a goal that cannot be shared, such as resources, customers, or market share.

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What are the types of competition?

Back

The main types of competition are direct competition (businesses offering similar products) and indirect competition (businesses offering different products that satisfy the same need).

Front

What is the role of competition in a market economy?

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Competition encourages innovation, improves quality, and lowers prices, benefiting consumers and driving economic growth.

Front

Define 'market share'.

Back

Market share is the portion of a market controlled by a particular company or product, expressed as a percentage of total sales in the market.

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What is an example of direct competition?

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An example of direct competition is Coca-Cola and Pepsi, as both offer similar soft drink products.

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What is an example of indirect competition?

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An example of indirect competition is a coffee shop competing with a bakery, as both satisfy the need for a snack or beverage.

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How does competition affect prices?

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In a competitive market, prices tend to decrease as companies strive to attract customers, leading to better deals for consumers.

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What is a monopoly?

Back

A monopoly is a market structure where a single seller controls the entire market for a product or service, limiting competition.

Front

What is the difference between perfect competition and monopolistic competition?

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Perfect competition features many sellers offering identical products, while monopolistic competition has many sellers offering differentiated products.

Front

What is a competitive advantage?

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A competitive advantage is a condition or circumstance that puts a company in a favorable position over its competitors.