Question

There were two shoe stores in town, but you decided to open another shoe store. More sellers in the market means _____ competition.

Answer 1

more competition. The competition to have the best shoe store. The more people, the more competition.

Answer 2

Answer: More competition.

When a market has more producers of a particular good, the competition will increase, assuming that the size of the market remains constant. This is because the same number of consumers will be divided by a larger number of producers, reducing the number of consumer each producer has access to.