Question

The concept of "competition" in a capitalist economy refers to ____________.

• A. competition among sellers to sell their goods
• B. competition among buyers to obtain goods to satisfy their wants
• C. both (a) and (b)
• D. neither (a) nor (b)

Answer 1

The correct option is C both (a) and (b)

In capitalist economy, prices of the commodities are affected by market forces of demand and supply which leads to open competition in the economy for both buyers, who compete to satisfy their wants as well as sellers, who compete to sell their goods and earn profits.