Which situation is the best example of competition in an economic system?
a. A restaurant just opened down the block from a movie theater, and the restaurant owner hopes to attract diners after each movie.
b. A small CD store slashed its prices to attract customers from a larger store that sells CDs and DVDs.
c. A store that sells sneakers has offered a special deal to customers from a nearby health club.
d. A federal agency has been created to monitor the production and distribution of food supplements.

Option B

the best example of competition in an economic system - A small CD store slashed its prices to attract customers from a larger store that sells CDs and DVDs.

In business, competition is a situation where several business firms attempt to take a slice of an inadequate product by altering the details of the selling good: cost, merchandise, advertising. Competition in the marketplace is desirable for purchasers and suitable for marketing.

When firms fight with each other, buyers receive many reasonable rates, volumes, and worth of goods. One major advantage of competition is an advance to discovery. Competition can begin firms to develop lower-cost production means, which can enhance their earnings and assist them to compete.

c.

clarify customers’ doubts only when asked.