What Is the Role of Competition in a Market Economy?  Article
Details   • Written By: Osmand Vitez   • Edited By: PJP
Schroeder   • Last Modified Date: 03 February 2014   • Copyright
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Free Widgets for your Site/Blog   A market economy is one where
individuals and businesses operate within a legal framework set
up by a government. The key factor here is that governments do
not interact — or do not do so heavily — with the market. The
role of competition in a market economy is often what makes this
system work well. In most cases, competition allows for more
choices, improves the quality of products through the efficient
use of resources, and enhances economic growth through increased
investments. In most cases, the results of competition are
almost always positive.  Self-interest is one of the key facets
in a market economy. It allows individuals or businesses to make
their own decisions on how to spend income and invest extra
capital. Economists ofte