What are the advantages of a competitive economy?

Question

What are the advantages of a competitive economy?

Answer 1

Consumers can obtain goods and services for low prices, since if a competitive firm keeps its price high, it will be thrown out of business.

Answer 2

Competitive Economies innovate new products and services. The lack of competition keeps you stuck in a way of life because  there is no motivation to improve. Like the old saying goes, "Why fix what ain't broke?"  And if there isn't competition stealing marketshare and sending your company into the toilet, you've got no reason to innovate.

Do you think Intel would have a Quad Core Processor if AMD wasn't always nipping at hits heels?  Shoot, we might still be running on 386 machines.