Discover 2 opportunities in perfect competition

Competition is one of the foundational concepts in economics. We’re taught in intro courses that competition lowers prices, because it allows markets to allocate resources efficiently. This is an example of Adam Smith’s “invisible hand” in action, a cornerstone of economic theory.But does competition always lower prices? The answer is, yes, sort of — it just depends on the degree of competition.Since that answer probably doesn’t satisfy anybody, let’s dig deeper.