Question

A city council decides that if a business changes its buildings or signs, it must follow new building codes. If a sign is upgraded, the business must pay for and pass a full building inspection to be sure all new building codes are followed. Which answer best summarizes the effect this policy will have on competition?

A. Because it applies equally to all businesses, it will have little effect on competition.
B. The new policy will affect new business only and make them less competitive overall.
C. Because it improves the look of the community, it increases competition among local businesses.
D. The new policy will unfairly punish existing businesses and make them less competitive overall.

Answer 1

I think it might be a

Answer 2

A. Because it applies equally to all businesses, it will have little effect on competition.

Step-by-step explanation:

This policy is meant to apply to any business that changes its buildings or signs. This is, therefore, applicable to all businesses, not only new ones. Moreover, it applies to all buildings equally, with no special concessions for any specific type of business. Because of this, we can assume that the new regulations will have little impact on competition.