Competitive Markets

How would you define a market?

• A place where consumers buy products

• A place where producers buy products

• A place where consumers and producers come together to buy and sell products

• A place where there is competition

How would you describe competition?

• It is the rivalry amongst buyers when they are purchasing products

• It is the rivalry between firms when trying to sell goods to the same group of consumers

• It refers when there are a limited number of sellers in the market

• It refers to firms having control over the market price of products

Would you say the fast food industry is highly competitive or non competitive?

• Non competitive

• Highly competitive

Do you think firms would prefer competition or less competition?

• Prefer competition

• Less competition

What happens to firm when they have face less competition?

• Lower profits and more innovation
• Higher profits and potentially less innovation
• Decreased market share and increased competition
• Stagnant growth and increased customer loyalty