Through the competition producers as if control each other. Their fight for the consumer leads to reduction of prices, reduction of costs of production, improvement of quality of production, strengthening of scientific and technical progress.
Specific is the competition between firms which priozvodit the different types of production satisfying the same need of the person. It is carried out through updating of production, a variety of the product range.
Emergence and development of the competition in the separate commodity markets (consumer goods, trade, household, medical and construction services, communication, automobile transport causes change of strategy of behavior of separate economic entities.
The competition is important in life of society. As the vivifying force of market economy, it promotes development of production and increase of its efficiency. Thanks to the competition a huge variety of goods and services and rich opportunities of a choice for consumers are created.
The competition as a method of economic control costs to society of the minimum expenses, but is thus the important force which constantly pushes the producer on reduction of costs of production and the prices, stimulates fight for the consumer and improvement of quality of goods.
It is easy to notice that big scientists, professing functional understanding of the competition, actually were a little anxious with to give it "correct". More likely, formulating the biting, memorable definitions, they simply wanted to focus attention on basic importance of certain consequences of competitive fight.
Perfect, or free, the competition in economy of the developed countries was typical to the middle of the XIX century. In the second half of XIX — the beginning of the XX century there are large enterprises and their associations. These processes led to essential change of competitive fight in the markets. Along with the perfect competition there were its new types, and first of all, the imperfect competition.
such environment it is characteristic for market economy - a special phase in development of a social production. It is known that not any commodity production and the market give rise to market economy. But the last is always based on a high level of development of commodity production and the commodity-money address.
the artificial — specially created by concentration in someone's hands of a certain economic activity (cartels, syndicates, trusts, concern, etc.). It is also possible to tell: the monopoly position of firm can be" natural" when it owns rare, unique non-reproducible resources, but can be created and is artificial when the firm itself by organizational receptions forms monopoly.