Final answer:
The success of one car dealership attracting others to the same area is an example of the appraisal principle of competition, which spurs market entry by new competitors offering varied attractions to customers.
Step-by-step explanation:
The car dealership along a roadway attracting other dealerships is an example of the appraisal principle of competition. When a monopolistic competitor in any industry achieves positive economic profits, it often sparks an influx of competitors into the market. These new firms may attempt to attract customers by offering additional services or distinct features, leading to a crowded marketplace where multiple businesses vie for customer attention and market share. This situation encourages innovation and may also affect the policies and pricing of the original monopoly competitor.