How does competition affect producers and consumers

Question

Social Studies

Jayda Clarke

6 October, 11:34

How does competition affect producers and consumers

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Answers (1)

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Charity Butler · Answer 1

The general consensus is that competition between producers lowers the prices for consumers as the producers compete for the business of the consumers and lower the price to stay competitive. Conversely, competition between consumers leads to increased prices set by producers as they can get a higher price out of consumers who are competing over a product.