A scenario where various economic agents carry out their commercial operations in a market.
In economics, competition is called the scenario where various economic agents carry out their commercial operations in a market such as selling, buying, distributing, etc.
Therefore, it is said that an organization or individual is competitive when it uses certain strategies and methods planned in the market to position itself above the rest and obtain more profitability.
In a market, sellers, buyers, or even the State, can influence the prices of products, in such a way that the price established by some factor or economic agent will be established by the aforementioned, either by the law of supply and demand. , by some fixing or pricing strategy by sellers or producers, or any law established by the State.
The main types of competition are listed below.
That market situation in which neither the suppliers nor the demanders can influence the prices of the goods or services.
In this type of competition, the economic agents involved actively participate by providing many products and consuming in large quantities, which generally leads to a balance of supply and demand which sets the price of the products, with which consumers must operate and bidders in the market.
That situation contrary to perfect competition, this situation occurs when economic agents can influence the prices of goods and services.
In this type of competition, the suppliers involved have the ability to influence the market as there are not many organizations that offer their products.
There are many factors that can lead a market to this point of competition, among them stand out: better advertising campaigns, better-established relationships with consumers, better costs related to production, among others.
Imperfect competition, in turn, has subdivisions, which will be listed below:
Here are some examples of competition:
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