In economic terms, what is defined as the act of competing for profit?

In economic terms, competition refers to the act of businesses or individuals striving to gain profit by attracting customers, often by offering better products, services, or prices than their rivals. This competition drives innovation, efficiency, and consumer choice in the marketplace. When entities compete, they work to outdo one another, which can lead to improved quality and lower prices, benefiting consumers and promoting economic growth.

Collaboration, on the other hand, involves different parties working together towards a common goal, which is contrary to the idea of competing. Monopoly pertains to a market structure where a single seller dominates the market, often reducing or eliminating competition. Collusion involves firms working together to control prices or limit production, which is generally considered anti-competitive and can lead to legal issues. Therefore, in the context of economic activities focused on profit generation, competition is the defining action among businesses.