Respuesta :
Competition can put pressure on profits by forcing companies to lower the price they sell goods. If you are the only shop in town, you can charge more than if there's a rival down the street.
The existence of competition would definitely reduce the overall profit that a company could get.
This happen because when competition exist, each competitors would be compelled to provide the best possible price for their products in order to attract more consumers. By lowering their price, they would receive less profit since it is not accompanied by the decrease in production cost.
