Question

A city council decides that if a business changes its buildings or signs, it must follow new local building laws. If a sign is upgraded, the business must pay for and pass a full building inspection to be sure the new laws are followed. Which answer summarizes the effect this policy will have on competition?

Because it applies equally to all businesses, it will have little effect on competition.
The new policy will affect new business only and make them less competitive overall.
Because it increases the cost for businesses, it will increase competition as more new stores open.
The new policy will unfairly punish existing businesses and make them less competitive overall.

Answer 1

Am I right with A?

Answer 2

Or not?

Answer 3

@smokeybrown

Answer 4

I think that makes sense. I can't really see any reason why that kind of law would affect some businesses differently from others, so I think A is a good choice

Answer 5

thank you