Why is competition CanGo an important element of the freemar

Why is competition (CanGo) an important element of the free-market system?

Solution

Competition is an important element of market because if there is no competititon, then monopoly will prevail in the economy.As we know, monopoly charges higher price and produces lower quantity than competitors leading to ineffieciency in the economy.Competition forces the producers to charge lower prices and enhance the quality of product to attract consumers.