Final answer:
Increased competition as a direct effect of businesses competing with better or cheaper products leads to various outcomes, including threatened profits for less competitive businesses and potential job losses for their workers. Successful competitors, in contrast, gain profits and provide higher incomes for their employees, while consumers enjoy better and more affordable products.
Step-by-step explanation:
The business practice discussed likely refers to competitive market dynamics where businesses strive to offer better or less expensive products to attract consumers. Based on the provided excerpts, one direct effect of this competition is Increased competition (A), which can lead to several outcomes. For businesses that fail to compete effectively, reduced profits and the potential to be driven out of the market are real threats, which can also negatively impact their workers through loss of income or jobs.
On the flip side, businesses that manage to succeed in this competitive environment see increased profits and can offer their employees higher income. Overall, consumers benefit from improved products and lower prices, suggesting that the aggregate effect on a nation's economy is positive.
Another impact mentioned is the potential for improved business behavior due to market pressures, such as in the case of discriminatory practices leading to a loss of workers to better-paying competitors. However, this impact is not listed among the options given in the initial question. Therefore, our focus remains on the direct effects of the competition resulting from firms offering better or cheaper products.