1.Explain the different type of competitions and give examples of Tanzanias companies that operates under each competitions.
Competition is the battle between businesses to win consumer acceptance and loyalty. The free-enterprise system ensures that businesses make decisions about what to produce, how to produce it, and what price to charge for the product or service. Competition is a basic premise of the free-enterprise system because it is believed that having more than one business competing for the same consumers will cause the products and/or services to be provided at a better quality and a lower cost than if there were no competitors. In other words, competition should provide the consumers with the best value for their hard-earned dollar.
Aspect of competition:
To be successful in today's very competitive business world, it is important for businesses to be aware of what their competitors are doing and to find a way to compete by matching or improving on the competitors' product or service. For example, if Pepsi-Cola offers a new affeine-free soda, Coca-Cola may offer a new affeine-free soda with only one calorie. By offering an improvement on the competitor's product, Coca-Cola is trying to convince soft-drink consumers to buy the new coke product because it is an improvement on Pepsi's product.
Mainly there are four types of competition, these include:-
Perfect competition (also known as pure competition) exists when a large number of sellers produce products or services that seem to be identical. These types of businesses are typically run on a small scale, and participants have no control over the selling price of their product because no one seller is large enough to dictate the price of the product. Instead, the price of the product is set by the market. There are many competitors in a perfect competition industry, and it is fairly easy to enter or leave the industry. While there are no ideal examples of perfect...