Competitive Markets

what is competition in markets?

rivalry existing between firms when trying to sell goods to customers (usually to the same group)

what are barriers to entry?

obstacles preventing a firm to enter a market

whats innovation in markets?

creation of a new product ; includes new methods (advanced and original)

whats product differentiation?

developing products with a hint of change so you can distinguish it from rivals!

adv and disadv of competition and consumers?

adv	disadv
low prices, more choice, better quality	disruption in markets, lack of innovation
new products = better economy	resource wasted = :(