Competition Theory

Competition Theory in economics explains how businesses and organizations compete for limited resources, customers, or market share. It involves strategies, innovations, and efficiencies that companies use to attract consumers and outperform rivals. The theory suggests that this competition promotes better products, services, and prices for consumers, as firms strive to improve and differentiate themselves. In essence, competition drives innovation and efficiency in markets, fostering economic growth and benefiting society by encouraging companies to meet consumer needs effectively.