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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.

Sagot :

In general, purely competitive markets tend to benefit consumers over producers because "Consumers control price through demand". Although perfect competition is practically impossible.

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.