Question

What are the gains from competition?

Short answer

Stimulation of growth and generation of substantial benefit for the community occurs due to competition..

Step-by-step solution

Step 1. Gain for competition meaning.

For a company to become more competitive, its important to adopt proper marketing strategies, increase quality and quantity of goods, and establish good and loyal customers. Its a scenario in economy where different firms fight among each other to gain customers attention by providing them with similar product of good quality.

Step 2. Following are the gains from competition.

a) Fostering innovation.

b) Diversity of supply and attractive prices for consumers and businesses alike.

c) Creates more productivity and better quality of products and services.