Competition
Description
Question:
How, if at all, does market competition among sellers benefit consumers? In a market economy, what must an entrepreneur do to earn profits and avoid losses? Does market competition have any downsides^?
How and why would businesses attempt to use political means (eg laws and regulations) to hamper their competitors or eliminate them altogether?
What does it mean to have monopoly power in a particular market? Can a monopoly be attained without government help? Should governments act to create monopolies, to encourage competition, or take no action either way?
Note: downsides means downsides of a competitive system as compared to one where competition is not allowed. It doesn’t mean unethical behavior which may occur in any kind of economic system).
