Example of how consumers win with competition

I am always shouting about how great competition is. I love competition because it spurs innovation, drives down prices and results in better, cheaper products. Here is a great example from the DVD market. DVD manufacturers are now making only $1 per unit in China. These low margins show that no single firm has pricing power and that prices in the marketplace are being driven down close to marginal cost.

So what does this mean to you, it means that you pay less for a DVD player and therefore you have more to spend on other things, like DVDs.