Basic economic theory demonstrates that
when firms have to compete for customers, it leads to lower prices, higher quality
goods and services, greater variety and more innovation. In an economy without adequate competition, prices and corporate profits rise, which
means large corporations gain wealth, while consumers and workers pay the cost [8]. Therefore,
the necessity of the competition in a capitalist
economy is undeniable. Competition affects the
market in two ways:
1. The first is through incentives: encouraging improvements in technology, organisation
and effort on the part of existing establishments
and firms.