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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