Explain the effect of competition on buyers and sellers

Explanation should include the following concepts:

• Competition is a characteristic of the free enterprise system.
• Competition between sellers provides better-quality products at lower prices for buyers.
• Competition can be direct or indirect.
• Competition can be based on price or non-price factors. 

Process/Skill Questions:

• How does competition affect business decision-making?
• What are the differences between direct and indirect competitors?
• How do businesses use competition to attract customers?
• What are examples of non-price competition? What factors other than price attract customers to a business?