What is the purpose of competition?

The purpose of competition is to act as a regulating force in the marketplace.

Explanation:

Competition is the measurement of forces between different parties, often with the intention of making them all better.

In economics, business competition limits the ability of a competitor to unilaterally influence the conditions for the circulation of goods on the market, that is, the degree to which market conditions depend on the behavior of individual market participants. In consequence, competition works as the rivalry of business entities in which the independent action of each of them excludes or limits the ability of each of them to unilaterally affect the general conditions for the circulation of goods on the appropriate product market.