Purchase Solution

Competition is the disciplinarian of the market economy

Not what you're looking for?

Ask Custom Question

Competition is the disciplinarian of the market economy. Explain.

Purchase this Solution
Solution Summary

This solution explains what it is meant by, "competition is the disciplinarian of the market economy".

Solution Preview

The market system encourages competition because there is a leveled playing field for both existing and new entrants. The basis of the competition in the market system is the freedom of choice that is exercised in pursuit of a monetary return. Competition between buyers, and sellers in the market system "diffuses economic power within the businesses and households that make up the economy" (McConnell & Brue, 2008, ...

Solution provided by:
Edwin Sinclar, MBA
Education
  • MBA, Aspen University
  • Bachelor of Science , Berea College
Recent Feedback
  • "Thank u"
  • "Thank You!"
  • "Thanks!"
  • "Thank you so much"
  • "Great job...thanks."
Purchase this Solution
Free BrainMass Quizzes
SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

View More Free Quizzes
Related BrainMass Solutions

  • Microeconomics by McConnell Bruce

    Competition is the disciplinarian of the market economy 3. What is meant by the term "creative destruction"? How does the emergence of MP3 (iPod) technology relate to this idea? 4. Explain the law of demand.

  • free market

    (http://en.wikipedia.org/wiki/Free_market_economy) Competition is vital for the development of any market.

  • Business Competition

    One dynamic that is affecting this is the ever-increasing role of government in the free market economy. As government grows and takes the place of free market businesses the dynamic of competition is changed forever.

  • New Global Economy & Marketing Mix Strategies

    Price will typically vary from market to market based on cost of product. Is it sourced/manufactured locally? Also, tariffs and cost of delivery must be considered. Product position will be in play depending upon competition.

  • Avantanges and disadvantages of of a free market system

    The basis of the competition in the market system is the freedom of choice that is exercised in pursuit of a monetary return.

  • Free Market

    Free market is a market place which supply and demand is unregulated except by the government competition policy, and rights in physical and intellectual property are upheld.

  • US Antitrust Policy and International Competition

    Antitrust laws protect competitive process that is essential for the functioning of the free market economy.

  • Supply and Demand / Market structures

    Firms therefore must sell at the point where marginal cost is equal to price. Monopolistic competition is a market structure in which there are also many firms, but each firm offers a slightly different type of product.

  • External forces affect on organizational behavior

    Competition is the force that affects business by making it keep abreast of what is happening and meet not only its own goals, but the goals of other entities. Competition is the company that produces like products or services or alternatives.

View More Related Solutions