why is competition good for businesses and their workers?

Answer 1

To put it simply (and the world isn't really this simple...):

Businesses must compete with better prices and/or better quality in order to attract customers, and to avoid losing too much business to competitors.

They must also compete with wages and benefits in order to attract and retain better quality employees.

Unfortunately, in today's regulatory atmosphere, the market is all but strangled, and so is not allowed to act freely. Many corporate decisions are made for political reasons rather than economic, and as a result, a large corporation will likely turn to the government to use force on their behalf.
This way they're no longer required to honestly compete for the business which has been handed to them, and they may also use similar tactics to keep employee costs down.

Answer 2

1. It forces them to be the best in their field

2. It forces companies to look for new answers to old questions and be more innovative rather than just riding on what's been created previously.

3. It drives prices down to make it more attractive to consumers, thereby increasing demand for *their* product/services. This demand keeps the workers busy and may even require additional workers. Once everyone is "won over" they can gradually increase their prices and current customers are not likely to stray, unless they don't keep up with expectations.

Answer 3

Increase in wages and benefits, also business can take advantage of competitors prices and go lower. Also can benefit both by producing more technology etc.

Answer 4

It makes people try harder. It creates new products and better efficiency and keeps monopolies from controlling the people.

Answer 5

increases wages and benefits and competion