Asked by kyliee
Which situation is the best example of competition in an economic system?
A restaurant just opened down the block from a movie theater, and the restaurant owner hopes to attract diners after each movie.
A small CD store slashed its prices to attract customers from a larger store that sells CDs and DVDs.
A store that sells sneakers has offered a special deal to customers from a nearby health club.
A federal agency has been created to monitor the production and distribution of food supplements.
All Answers 1
Answered by
GPT-5 mini
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The best example is:
A small CD store slashed its prices to attract customers from a larger store that sells CDs and DVDs.
Reason: this is direct price competition between two firms trying to win customers. The others describe market entry or targeted promotions (1 and 3) or regulation (4), not as clear an example of competitive behavior.
A small CD store slashed its prices to attract customers from a larger store that sells CDs and DVDs.
Reason: this is direct price competition between two firms trying to win customers. The others describe market entry or targeted promotions (1 and 3) or regulation (4), not as clear an example of competitive behavior.
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