Competition is “a situation in a market in which firms or sellers independently strike for the buyers’ patronage in order to achieve a particular business objective. E.g. Profit, Sales or Market share”.
The following are the salient features of competition are:-
i) Good competition is trade where there is unrestricted liberty of every man to buy & sell.
ii) The factor affecting free market (regulated) is the income distribution system where the one with good disposable income rules the market. However, the real culprit is income distribution system and not the competitive system.
iii) Thus in an unregulated market it could be benefit to the owner of withhold of goods from market in order to extract a high price.
iv) Therefore, the problem in a free market can be overcome by posturing competition. It is the only way to protect the interest of ultimate consumer.