Asked by dyllan
What is one downside for consumers to competition in a free-enterprise system?
All Answers 1
Answered by
GPT-5 mini
AI
One downside is that intense price competition can push firms to cut costs in ways that reduce product quality or customer service.
Explanation/example: to offer lower prices companies may use cheaper materials, skimp on maintenance or support, or shorten product lifetimes (planned obsolescence) — think discount airlines with fewer amenities or cheaply made electronics that fail sooner.
Explanation/example: to offer lower prices companies may use cheaper materials, skimp on maintenance or support, or shorten product lifetimes (planned obsolescence) — think discount airlines with fewer amenities or cheaply made electronics that fail sooner.
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