Why do consumers benif from businesses having to compete?

Answer 1

The benefit to the consumer with competition is usually a larger selection for a particular product with perks such as lower pricing and/or rebates. Aside from that prospect, the ability to have a selection based on brand preference is a great attribute for the consumer.

Consumers do benefit from competition of how the store/resto/mall, makes some promos or other good things that could capture the consumers. and also by improving their business for the good of the consumers, that could gain their trust and support.

Answer 2

If there is no competition in the market the producers will not even bother to produce a variety of goods , or produce a commodity which is higher from the utility point of view from other products. The producers will produce better quality of goods and in a way which makes the cost price of the good at an economic price which is easily bought by customers/consumers .The consumers get different products from the company which are better (viz. the producing company has produced better goods to attract customers ). for eg. - a company produces normal manual washing machines but if another company starts to produce automatic washing machines the later is likely to sell more since it is convenient to use . Thus it is good for the business enterprises as they get more money and the consumers are introduced to a variety of goods.

Answer 3

Consumers benefit from competition because they can find the lowest price available. If only one store carries an item, they can charge whatever they want and the consumer has to pay the price.

Answer 4

Competition lowers prices and, in ideal circumstances, encourages innovation. Both of these result in a higher consumer surplus.

Answer 5

competition leads to lower prices