What is a key effect of competition for businesses in the market?

Competition in the market primarily leads to a greater variety of choices for consumers. When multiple businesses compete for the same market share, they are incentivized to differentiate their products and services to attract customers. This often results in innovation and improvements in product offerings, as companies strive to meet customer needs and preferences effectively.

Additionally, competition can drive down prices and improve services, as businesses seek to outdo one another. This environment encourages businesses to listen to consumer feedback and adapt their offerings accordingly, thus providing consumers with a wider array of options that cater to different tastes and budgets. Ultimately, this enhanced selection can lead to increased consumer satisfaction, as individuals are more likely to find products that meet their specific demands.

In contrast to this, some of the other options highlight potential negative impacts of competition, which do not align with the overall benefits that competition provides to consumers in a healthy market scenario.