he only unfailing and permanent source of improvement is liberty, since by it there are as many possible independent centres of improvement as there are individuals.”
-- John Stuart Mill
In business there are three main types of market structure
- Monopoly - 1 seller
- Oligopoly - Few sellers
- 'Perfect' competition - Many sellers
Competition means lots of duplication, why does competition work?
- A lot of business is trial an error, more competitors means more trial.
- Business competition lowers the economic power of the firms, forcing them to be leaner and more efficient.
- Competition creates downward price pressure.
- Competition creates competition for customers, bringing services to difficult to service areas.
- Competition reduces companies being complacent.
- Competition is the best regulator