Reasons we are able to buy good quality products at low prices Necessity of competition in the markets

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Reasons we are able to buy good quality products at low prices
What would happen if there was no competition?

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What is a market economy?
What is competition?
What are consumers' benefits from competition?
What would happen if there was no competition?

What would happen if there was no competition?

If there was no competition in the markets, companies woud neglect technological development and cost reduction efforts. Price and service would become more advantageous to companies, and consumers would result in no receipt of benefits.
Now, let us take a look at what would happen if there was no competition in the markets.

If different stores did not compete with each other and talked to each other to raise the price, we would only be able to buy the same product at the same price, wherever we went shopping.
If manufacturers decided on the stores' selling prices, the stores would not be able to compete on price. We would have to buy the same product at a high price, wherever we went shopping.

If successful bidders for public works were chosen by underhand discussions between the bidders, the cost of the public works would be higher than the original cost adequate to the works. This would result in a waste of our taxes.
If one manufacturer monopolizeｄ one market by ousting its rivals, there would be no competition in the market. As a result, we would not be able to choose products of better quality and lower prices.

If several companies jointly forced certain companies offering products and services at lower prices out of the market, we would lose the opportunity to choose a product for a lower price or better service.
If two companies with large market shares merged to form a new company and monopolized the market, there would be no competition. Then, if the price rose, we would have no choice but to buy the product from the new company.