The Idea Of Competition The Classical And Marxist Economics

This paper studies the idea of competition. What is competition? Do we need competition, why do we need it? The paper further elaborates competition in aspects of two school of thoughts, the Classical and Marxist economics. Competitions are ubiquitous. It may be in the form of us seeking a promotion at work, company competing for bigger market share. In fact, humans more often than not ,seek to achieve a superior position relative to others in a variety of contexts (Garcia, Tor and Schiff, 2013). Simply put, an undertaking with an aim of establishing gain by hindering the competitive edge of the rival party involved. In economic sense, in a marketplace, there are buyers and sellers for a product existing at variance, which would allow the price of products to change to counter the change in supply and demand. In todays times almost every product has a substitute alternative, hence, a buyer would have the convenience of switching to the cheaper alternative if price of a product becomes unaffordable for them. Hence, the buyers have relative influence on the price of the products. However in some industries there are only a few supplier of the products and services, due to the absence of substitutes, whic h reduces the bargaining power of the consumers on the price of goods, due to the producers having absolute power over the pricing of the goods. The Classical economic school of thought reflects on competition as instrument in forcing of market price to its natural levelShow MoreRelatedLiberal Pluralism Vs. Modern Society Essay1628 Words   |  7 Pagesprovide content according to the demands of the consumer. This paradigm’s key conceptions include invisible hand competition (explain), rationality and positive assumptions about modernity and technology. 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