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chubhunter [2.5K]
3 years ago
10

Why do purely competitive markets tend to benefit consumers over producers? Companies control quality and supply. Companies work

together to set prices favorable to consumers. Competition is driven by factors other than price. Consumers control price through demand.
Mathematics
2 answers:
Alina [70]3 years ago
5 0

Answer;

-Consumers control price through demand.

Purely competitive markets tend to benefit consumers over producers because consumers control price through demand.

Explanation;

-In a purely competitive market, there are large numbers of firms producing a standardized product. The market prices are determined by consumer demand; suppliers have no influence over the market price, and thus, the suppliers are often referred to as price takers.

Tom [10]3 years ago
3 0
In general, purely competitive markets tend to benefit consumers over producers because "<span>Consumers control price through demand". Although perfect competition is practically impossible. </span>
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