What is a key outcome of unchallenged competition that leads to economic uncertainty?

Unchallenged competition can lead to periodic depressions due to the lack of regulatory oversight or monopolistic behaviors that may arise from such a scenario. When companies operate without competition, they may not feel the pressure to innovate or maintain reasonable prices, ultimately leading to market inefficiencies. As businesses prioritize profit over consumer needs, they can create economic instability, resulting in downturns or depressions.

Consistent growth, increased consumer confidence, and stable markets are typically associated with healthy competition that encourages innovation and fair pricing practices, which contrasts with the economic outcome of unchallenged competition that is more prone to cycles of volatility and depressions. These factors illustrate how periods of unchallenged competition can lead to unpredictable economic conditions.