Competition- Role And Limitations Flashcards
1
Q
What are some of the draw backs to competition on a firm?
A
Cutting costs by cutting staff
Short term action such as price cutting may damage long term health of business
Adopting unethical practices
2
Q
What does innovative mean?
A
A new, perhaps original, product or process
3
Q
What does unethical mean?
A
An action or decision that is wrong from a moral stand point
4
Q
What are some of the benefits of competition for consumers?
A
Firms forced to offer good products and a good service
Firms forced to keep prices down
Firms bring in new innovative products or services
