Final answer:
Enhanced innovation and market consolidation are two long-term effects of increased competition. Increased competition spurs innovation to attract consumers, while market consolidation may occur as companies merge or go out of business.
Step-by-step explanation:
Two long-term effects from increased competition are enhanced innovation and market consolidation. Increased competition can lead to enhanced innovation as firms must develop new or improved products and services to maintain or increase their market share. This can result in a broader selection of goods and potentially more advanced technological offerings for consumers.
Another long-term effect of increased competition can be market consolidation. As firms struggle to compete, they might be driven out of business or choose to merge with or be acquired by other companies, which can reduce the number of firms in a market and potentially lead to a more oligopolistic structure, affecting consumer choices and market dynamics in the long run.
Contrary to causing reduced consumer choice and higher prices for goods and services, increased competition generally leads to a wider array of options and competitive pricing that benefits consumers.