Final answer:
Competition from firms with better or cheaper products can reduce a business's profits and may drive it out of business.
Step-by-step explanation:
Competition from firms with better or cheaper products can reduce a business's profits and may drive it out of business. Competition from firms with better or cheaper products can reduce a business's profits and may drive it out of business. This happens when other firms enter the market and offer similar or superior products or services.
For example, a gas station with a great location may face competition from other gas stations that offer additional attractions like selling coffee or having a car wash. Competition from firms with better or cheaper products can reduce a business's profits and may drive it out of business.
Similarly, a successful restaurant with a unique barbecue sauce may have to compete with other restaurants that try to copy the sauce or offer their own unique recipes.