Economics 15th Edition by James Gwartney,Richard Stroup,Russell Sobel,David Macpherson

Exercise 3

What is the primary requirement for a market to be competitive? Is competition necessary for markets to work well? Why or why not? How does competition influence the following: (a) the cost efficiency of producers, (b) the quality of products, and (c) the discovery and development of new products? Explain your answers.