Market Competition

Market competition refers to the rivalry among businesses within the same industry or sector to attract customers and increase sales. It occurs when multiple companies offer similar products or services and strive to outperform each other by improving quality, reducing prices, enhancing customer service, or innovating new offerings. Market competition can lead to increased efficiency, better product selection, and lower prices for consumers. It is a fundamental principle in economics, promoting innovation and consumer choice while affecting market structures, such as monopolies, oligopolies, and perfect competition. Ultimately, effective market competition can drive economic growth and improve consumer welfare.