impact of competition Flashcards
1
Q
what are the positive impacts on consumers
A
lower opportunity cost
discounting
consumer surplus - difference between price the consumer is willing to pay to price they actually pay
2
Q
what are the disadvantages of competition on consumers
A
poor quality
product similarity
3
Q
what are the positive impacts on producers
A
forces research and development
opportunities for buy outs gaining EOS
4
Q
what are the negative impacts on producers
A
can’t change price due to competition
have to price match
more money spent on advertisement schemes
