Competition
The struggle among producers for the dollars of consumers
Three facts
- Competition is the regulating force of the free market
- Consumers want the lowest prices, while firms want the highest
- Self-interest motivates the Free Market
Markets
Smart Phones -Samsung v. Apple - S5 v. iPhone 6
Samsung Galaxy S5
- 5.1 inches in size
- auto focus on camera
- 2.1 megapixel front camera
iPhone 6
- 1.2 megapixel front-facing camera
- 4.7 inches in size
- tap to focus on camera
One way they compete is through features
They force each other to innovate through competition
Fast Food - Burger King v. McDonalds - Big Mac v. Whopper
Big Mac
- (2) 1.6 oz. beef patties
- American Cheese
- "Special Sauce"
- (1) 4 oz. beef patty
- sesame seed bun
- tomato
They make each other better by constantly trying to lower prices.
Cola - Pepsico v. The Coca-Cola Company - Pepsi v. Coke
Coke
- 39 g of carbohydrates
- 45 mg of sodium
- 39 g of sugar
- 20 g of carbohydrates
- 25 mg of sodium
- 20 g of sugar
The make each other better by trying to lower sugar while maintaining taste, and by getting restaurants to carry their product, exclusively.