👉 Overcompetition is a situation where there is an excessive number of firms or businesses in a market, which can lead to low prices and limited competition. This condition occurs when firms are competing with each other to sell their products at the same price or higher than what they charge, leading to decreased profits for consumers. Overcompetition can be beneficial if it creates new markets for existing products, but overcompetition can also harm businesses by driving down prices and reducing competition.
