
To state: Whether the competition is good for consumers.

Answer to Problem 21AA
Competition is good for consumers as it offers them with unlimited choices.
Explanation of Solution
More competition is generally good for consumers because more competition means more firms in the selling business resulting in more choices for the consumers to choose from. In competition it is basically
More competition leads to decrease in supply because sellers don’t get the chance to have a good market share as the market gets divided amongst other sellers too.
Introduction: Competition is considered good for consumers are offered a wide variety of products to choose from and thus the sellers ensure that good quality products are being offered to them.
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