How does competition build the consumer better sour?
In business, how does competition make the consumer better off? Also, what are the benefits of competition?
Answers: So the companies hold to try harder to impress the consumer, for example one company might lower their prices to get more sales than another, which would be apt for the consumer because they can now get cheaper merchandise.
A consumer chooses a product based on price, quality and good point.
The reason you pick the cheapest toilet paper is because you want to stockpile money. The reason you pay extra to receive Charmin or Quilted Northern is because you don't like wiping beside sand paper. The reason you but it where on earth you buy it generally comes down to location. You will buy products most consitently from the place that provides you with the best competence, value and price for the item you are looking for.
Competition especially locally increases your odds of getting what you want whether that be the best point, the best value, the best price, or a combination of them all.
the biggest benifit of competition is choice for the consumer, supposedly if two companys offered one and the same product they would want to have the edge over thier competitor so they may extend a discount. Butsometimes you can get large companies colluding and rigging thier prices to capture more money from the consumer because businesses have to compete for consumers choice, you get better safer products. if ur products not undamaging, theyll go to someone else. but also, this does not happen adjectives the time either.
if makes the price of produce go down because as i said, the consumer goes to to whoever is cheaper.
Businesses strive to own a lower product price than the competition. Therefore the consumer gets product cheaper than would have if near had been no competition. This is economics 101.
Competition ensure that the consumer can usually get a good price on an item.
If you enjoy only one company (Company "A") that makes "widgets", after that company can charge whatever they want for their "widgets" because they are the only hobby in town (ie a "monopoly").
Now, you get another company (Company "B") or store within town that sells the same widgets. It sell widgets for about HALF of what the first company sells their widgets for. So Company B starts siphoning sour customers from Company A.
Company starts losing customers and money. So they are forced to cut their prices to the same as "B" or just a bit lower.
Now depending on what the profit outside edge is, Company A and Company B will probably match prices, etc. If B can sell for partly of what A is selling widgets for, that means that there is any a BIG profit margin, or company A's costs are high.
This is sort of what the airlines and Wal Mart do. Well it is EXACTLY what they do.
So surrounded by order to compete, a company MUST minimize costs while keeping productio or sales up.
So in a minute we have A and B battling for customers surrounded by your town, when COMPANY "C" comes along and says, I can SELL the same widgets for 1/3 of what A nd B can, so immediately C gets all the customers!
The price is LOW and customers BENEFIT! But loaf, there IS a downside:
Now, let's say that A really have high costs...labor, etc and they could not compete, and they went belly up (bankrupt). Many relatives lose their jobs or take lower paying service job (like Wal Mart)...
Now B, looking for real ways to cut costs, decides to CLOSE it's widget factory contained by Kansas City, and put lots of higher paid workers out of work.
They find that they can bring back their widgets made for about 1/10 the cost in CHINA! So they move about to China and have some Chinese factory make them.
So very soon, Company C, who had been adjectives costs and was winning customers, is still making widgets here contained by, say, Dallas. However, their sales, which be once strong, are now slipping because Company B moved basically stopped MAKING them and individual 'resells' them in the U.S.
So NOW company C, in an shot NOT to end up like Company A, have to do the same thing to compete near Company B...that is, get THEIR widges made within China as well! Maybe right next door to the factory that make's widgets for Company B!
So NOW out of the three widget companies, ONE is in receivership and two have moved to buying widgets made in China and selling them here.
And American workers be laid off.
This is how it happens!
If you want to trade your 'widget' in Wal Mart, well, it is no longer YOU who explain to Wal Mart what to sell it for...Wal Mart tells you! Yes...if you want to flog your widgets in a Wal Mart and take benefit of the fact that Wal Mart is the largest retailer in the world, you hold to agree to what Wal Mart says they will sell it for. It doesn't event if you are making your widgets in the U.S.A...if you can't make it cheap plenty to sell it at Wal Mart's price and make a profit, you a moment ago get it made in CHINA.
So that's why 1) gasoline is so high-ranking and 2) building materials are so high. China is now the world's FACTORY and their discount is smokin' red hot and they are buying and consuming MORE oil than we are. And they compete for it same as us and they buy it. Same for concrete and lumber.
So those real 'cheap' prices at Wal Mart are insidious. We are sending BILLIONS and BILLIONS of dolllars to China, and the Communist Chinese Government is using the profits from those same factory that make the widgets we buy to modernize their armed forces (esp, Navy), while we contine to low-price our country into oblivion! Look at everything within your house...MADE IN CHINA!
I guess I've said enough.
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Answers: So the companies hold to try harder to impress the consumer, for example one company might lower their prices to get more sales than another, which would be apt for the consumer because they can now get cheaper merchandise.
A consumer chooses a product based on price, quality and good point.
The reason you pick the cheapest toilet paper is because you want to stockpile money. The reason you pay extra to receive Charmin or Quilted Northern is because you don't like wiping beside sand paper. The reason you but it where on earth you buy it generally comes down to location. You will buy products most consitently from the place that provides you with the best competence, value and price for the item you are looking for.
Competition especially locally increases your odds of getting what you want whether that be the best point, the best value, the best price, or a combination of them all.
the biggest benifit of competition is choice for the consumer, supposedly if two companys offered one and the same product they would want to have the edge over thier competitor so they may extend a discount. Butsometimes you can get large companies colluding and rigging thier prices to capture more money from the consumer because businesses have to compete for consumers choice, you get better safer products. if ur products not undamaging, theyll go to someone else. but also, this does not happen adjectives the time either.
if makes the price of produce go down because as i said, the consumer goes to to whoever is cheaper.
Businesses strive to own a lower product price than the competition. Therefore the consumer gets product cheaper than would have if near had been no competition. This is economics 101.
Competition ensure that the consumer can usually get a good price on an item.
If you enjoy only one company (Company "A") that makes "widgets", after that company can charge whatever they want for their "widgets" because they are the only hobby in town (ie a "monopoly").
Now, you get another company (Company "B") or store within town that sells the same widgets. It sell widgets for about HALF of what the first company sells their widgets for. So Company B starts siphoning sour customers from Company A.
Company starts losing customers and money. So they are forced to cut their prices to the same as "B" or just a bit lower.
Now depending on what the profit outside edge is, Company A and Company B will probably match prices, etc. If B can sell for partly of what A is selling widgets for, that means that there is any a BIG profit margin, or company A's costs are high.
This is sort of what the airlines and Wal Mart do. Well it is EXACTLY what they do.
So surrounded by order to compete, a company MUST minimize costs while keeping productio or sales up.
So in a minute we have A and B battling for customers surrounded by your town, when COMPANY "C" comes along and says, I can SELL the same widgets for 1/3 of what A nd B can, so immediately C gets all the customers!
The price is LOW and customers BENEFIT! But loaf, there IS a downside:
Now, let's say that A really have high costs...labor, etc and they could not compete, and they went belly up (bankrupt). Many relatives lose their jobs or take lower paying service job (like Wal Mart)...
Now B, looking for real ways to cut costs, decides to CLOSE it's widget factory contained by Kansas City, and put lots of higher paid workers out of work.
They find that they can bring back their widgets made for about 1/10 the cost in CHINA! So they move about to China and have some Chinese factory make them.
So very soon, Company C, who had been adjectives costs and was winning customers, is still making widgets here contained by, say, Dallas. However, their sales, which be once strong, are now slipping because Company B moved basically stopped MAKING them and individual 'resells' them in the U.S.
So NOW company C, in an shot NOT to end up like Company A, have to do the same thing to compete near Company B...that is, get THEIR widges made within China as well! Maybe right next door to the factory that make's widgets for Company B!
So NOW out of the three widget companies, ONE is in receivership and two have moved to buying widgets made in China and selling them here.
And American workers be laid off.
This is how it happens!
If you want to trade your 'widget' in Wal Mart, well, it is no longer YOU who explain to Wal Mart what to sell it for...Wal Mart tells you! Yes...if you want to flog your widgets in a Wal Mart and take benefit of the fact that Wal Mart is the largest retailer in the world, you hold to agree to what Wal Mart says they will sell it for. It doesn't event if you are making your widgets in the U.S.A...if you can't make it cheap plenty to sell it at Wal Mart's price and make a profit, you a moment ago get it made in CHINA.
So that's why 1) gasoline is so high-ranking and 2) building materials are so high. China is now the world's FACTORY and their discount is smokin' red hot and they are buying and consuming MORE oil than we are. And they compete for it same as us and they buy it. Same for concrete and lumber.
So those real 'cheap' prices at Wal Mart are insidious. We are sending BILLIONS and BILLIONS of dolllars to China, and the Communist Chinese Government is using the profits from those same factory that make the widgets we buy to modernize their armed forces (esp, Navy), while we contine to low-price our country into oblivion! Look at everything within your house...MADE IN CHINA!
I guess I've said enough.