Question

How do consumers form competition making businesses

Answer 1

Hello!

Consumers can impact competition between businesses based on what they consume. Different businesses who produce the same product often produce them differently and produce a different quality of the item.

Consumers impact competition based on which company they purchase their products from. By purchasing products, consumers are showing the companies what kind of a product they want, which results in companies competing to develop the best version of the product.

I hope this helps you! Have a lovely day!

- Mal