Perfect competition helps make things better and more efficient in a few different ways:
Using Resources Wisely: Companies need to use their resources well to keep costs down. This is important because prices are set based on what people are willing to pay.
Motivation to Create: Since there are many companies competing, any new idea or product can give a big advantage. This makes businesses want to invent and create new things.
Benefits for Shoppers: More competition means lower prices and better quality for people who buy products.
For example, in farming, farmers are always coming up with new ways to grow more food. This helps produce more and better food for everyone.
Perfect competition helps make things better and more efficient in a few different ways:
Using Resources Wisely: Companies need to use their resources well to keep costs down. This is important because prices are set based on what people are willing to pay.
Motivation to Create: Since there are many companies competing, any new idea or product can give a big advantage. This makes businesses want to invent and create new things.
Benefits for Shoppers: More competition means lower prices and better quality for people who buy products.
For example, in farming, farmers are always coming up with new ways to grow more food. This helps produce more and better food for everyone.