FREE COMPETITION Meaning and
Definition
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Free competition is an economic concept used to describe a system where businesses and individuals are allowed to freely engage in market transactions without government interference or restrictions. It is based on the principles of voluntary exchange, open access to markets, and absence of barriers or limitations to entry and exit.
In a free competition scenario, there are no artificial barriers like monopolistic practices, price fixing, or anti-competitive agreements that hinder market participants from freely setting prices, determining quantities, and engaging in fair and open competition. This unrestricted environment allows for multiple sellers and buyers to operate independently and make their own decisions based on their own self-interests.
Free competition promotes efficiency, innovation, and consumer welfare by stimulating greater choices, lower prices, higher quality products, and improved services. It encourages businesses to strive for excellence, constantly innovate, and adapt to changing market demands.
However, it is important to note that free competition is not a completely unregulated system. Governments often play a role in ensuring fair competition by preventing deceptive practices, protecting consumer rights, and enforcing anti-trust laws to prevent the concentration of market power among a few dominant players.
Overall, free competition is an essential aspect of a market economy, promoting economic growth, individual freedom, and enhancing overall societal welfare through a fair and open market environment.
Common Misspellings for FREE COMPETITION
- dree competition
- cree competition
- vree competition
- gree competition
- tree competition
- rree competition
- feee competition
- fdee competition
- ffee competition
- ftee competition
- f5ee competition
- f4ee competition
- frwe competition
- frse competition
- frde competition
- frre competition
- fr4e competition
- fr3e competition
- frew competition
- fres competition
Etymology of FREE COMPETITION
The term "free competition" stems from the combination of two root words: "free" and "competition".
The word "free" originated from Old English "frēo", which meant "not in bondage, exempt from, or having personal rights". This word later evolved into Middle English "fre" or "free", maintaining similar meanings of being unrestricted, independent, or not constrained by external forces.
The word "competition" has Latin roots, coming from the Latin word "competitio", derived from the verb "competere". "Competere" is a combination of "com", meaning "together", and "petere", meaning "to seek". Thus, "competere" originally meant "to seek together" or "to strive for".
