What economic term describes the rivalry among businesses to develop better products and prices?

The term that describes the rivalry among businesses to develop better products and prices is competition. This concept is fundamental in a capitalist economy, where multiple businesses vie for consumer attention and market share. Through competition, companies are incentivized to innovate and improve their offerings, which can lead to advancements in technology and quality of goods and services, ultimately benefiting consumers.

In a competitive environment, businesses must constantly assess their pricing strategies and the quality of their products to attract and retain customers. This rivalry fosters a dynamic marketplace where efficiency is prized, leading to better options and prices for consumers. The presence of competition ensures that no single company can dominate the market unchecked, which promotes fairness and accessibility in the economy.