What is one downside to competition in a free enterprise system?

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1254629

2026-03-18 01:35

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One downside to competition in a free enterprise system is that it can lead to monopolistic practices if larger companies dominate the market, potentially driving smaller businesses out. This can result in reduced consumer choices and higher prices in the long run. Additionally, intense competition may encourage cost-cutting measures that compromise product quality or labor conditions.

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