What is the role of competition in a mixed economy?

Economics Mixed Economy Questions



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What is the role of competition in a mixed economy?

The role of competition in a mixed economy is to promote efficiency, innovation, and consumer choice. Competition encourages businesses to strive for better products and services at lower prices in order to attract customers. This leads to increased efficiency as businesses are motivated to minimize costs and maximize productivity. Additionally, competition fosters innovation as companies seek to differentiate themselves from their competitors. Ultimately, competition in a mixed economy benefits consumers by providing them with a wider range of choices and better quality products at competitive prices.