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What can be a positive effect of competition in business?

Answer and explanation

Correct answer: Improvement in quality and service

Competition encourages businesses to offer better quality, service, convenience or value so that customers choose them. It can stimulate innovation and improve responsiveness, although it does not guarantee success for every firm. Option A is therefore the valid positive effect; the other choices are exaggerated consequences and are not generally true.

Related tags

CompetitionQualityMarketEntrepreneurship DevelopmentMsme And Business EntrepreneurshipBusiness StudiesClass 11 Mcq

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