Competition
Definition
Competition refers to the rivalry or contest between individuals or organizations seeking to gain an advantage over others by offering better products, services, or prices. It is driven by the desire for market share and profit.
Analogy
Imagine a school where multiple students are selling lemonade. Each student wants to attract more customers and make more money than their classmates. They try different strategies like offering lower prices, tastier flavors, or faster service. This competition pushes them to constantly improve their lemonade and provide better value to customers.
Related terms
Market Share: The portion of the total sales in a particular market that a company or product holds.
Monopoly: A situation where there is only one seller in a market, resulting in limited competition.
Oligopoly: A market structure dominated by a small number of large firms that have the power to influence prices and control the market.
"Competition" appears in:
Subjects (6)
Are you a college student?
Study guides for the entire semester
200k practice questions
Glossary of 50k key terms - memorize important vocab
Resources
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.