Consumers and Competition

Assignment:
1. What are three benefits of competition among firms to the consumer?
2. As a consumer, how are you personally impacted by the benefits you listed? Provide at least one example.

Three of the ways that consumers benefit from competition are by lower prices, innovation, and variety of choices. As competition in a particular segment grows often they are forced to offer their products or services at lower prices in an effort to win consumers. This can also lead to a wider variety of options for a person to choose from. Innovation is also a great benefit from the increase of competition.
Personally, I have seen increasing benefits to myself especially in technology products. The first computer I ever had saw a Commodore 64. At the time there were very few computers on the market for the individual. As the demand for personal computers grew so did their capabilities and choices that were offered. This has led us to a place where your choices of a home computer are almost limitless. Do you want a PC, laptop, or netbook? Do you want to go with one from Dell, Acer, Apple, HP or another brand? With so many choices available the costs of computers have dropped dramatically in recent years. This makes it much easier for a consumer to find the right product for their needs.