Okuzeka
Economics vocabulary · Markets, Supply and Demand

Competition

Meaning in economics, with examples

nounCore term

In economics, competition means: Rivalry between firms that sell similar products and try to win the same customers, which tends to push prices down and quality up.

In Turkish: rekabet

How it is used

Economists describe markets by how much competition they have, from perfect competition to monopoly. In the news: fierce or intense competition, foreign competition, competition authorities. The adjective is competitive: a competitive market, competitive prices.

Example sentences

  1. Competition from online retailers has forced many small shops to cut their prices.

  2. Under perfect competition, firms are price takers: no single firm can influence the market price.

Common collocations

  • fierce competition
  • perfect competition
  • foreign competition
  • competition authority
  • face competition
  • monopolyA market in which a single firm is the only seller of a product with no close substitutes, which gives it the power to set prices.
  • marketAny arrangement, physical or online, where buyers and sellers meet to exchange goods, services or assets, and where prices are formed.
  • market failureA situation in which a free market, left alone, does not produce an efficient outcome for society, so too much or too little of something is produced.
  • free tradeInternational trade with few or no barriers such as tariffs, quotas or subsidies, so that goods and services move freely between countries.

More terms: Markets, Supply and Demand

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level:

This page explains English vocabulary for learners. It is not financial advice.