Final answer:
Market power decreases when competition increases with many companies offering equally attractive products or services, leading to reduced profits and potentially a loss of jobs.
Step-by-step explanation:
The question is addressing the concept of market competition and its effect on businesses. In a market with many competitors offering equally attractive products or services, a business's market power decreases. Market power is a firm's ability to raise the price of a good or service without losing all its customers. As competition increases, particularly from firms offering better or cheaper products, a company's profits are likely to decrease because customers have more substitutes available to them. Furthermore, an increase in competition can also lead to a loss of jobs or reduction in income for workers if a business downsizes or exits the market as a result of reduced profits.