ADEQUATE COMPETITION Meaning and
Definition
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Adequate competition refers to a situation in the marketplace where there is enough rivalry and rivalry among firms to ensure that customers have a reasonable range of choices and options. It represents the existence of an acceptable level of competitive pressures that prevent any one firm or group of firms from dominating the market and exercising excessive control over pricing, quality, or market access.
Adequate competition is characterized by fair and equal opportunities for market participants to compete, resulting in a balanced playing field. In such a scenario, businesses can freely enter and exit the market without significant barriers, and consumers can effectively exercise their power to make informed decisions. Adequate competition is crucial for maintaining a healthy, dynamic, and efficient market economy.
In an environment of adequate competition, firms are incentivized to continuously improve their products, services, and efficiency in order to gain a competitive advantage. This leads to innovation, increased productivity, and ultimately benefits consumers through lower prices, better-quality goods and services, and wider choices. Adequate competition also ensures that no single firm or group of firms can exploit their market power to artificially inflate prices or engage in anticompetitive conduct that harms consumers or other market participants.
Regulatory bodies and competition authorities often play a key role in safeguarding and promoting adequate competition. Their primary objective is to prevent anti-competitive practices and ensure that market forces operate freely and efficiently to the benefit of both businesses and consumers.
Etymology of ADEQUATE COMPETITION
The term "adequate competition" is not a word with a specific etymology. It is a combination of two words that have their own separate etymologies:
1. Adequate: The word "adequate" comes from the Latin word "adequatus", which is the past participle of the verb "adēquāre", meaning "to make equal". It entered English in the late 16th century, with the sense of "equal to some requirement or purpose".
2. Competition: The word "competition" has Latin roots as well. It derives from the Latin word "competere", which means "strive together". The word entered English in the late 16th century, with the meaning of "the action of striving and contending for honor, power, or advantage".
