Which of the following is an example of indirect competition?

• A. A local grocery store and a supermarket selling the same brand of milk.
• B. Two smartphone manufacturers competing for market share.
• C. A coffee shop and a bakery both attracting customers for breakfast.
• D. Two gas stations located across the street from each other.

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of indirect competition. Indirect competition occurs when businesses offer different products or services that satisfy the same customer need or want, rather than directly competing with identical products.
2. Step 2: Analyze each option to see if the businesses are offering the same product (direct competition) or different products that fulfill a similar need (indirect competition).
3. Step 3: For the local grocery store and supermarket selling the same brand of milk, this is direct competition because they sell the same product to the same customers.
4. Step 4: For two smartphone manufacturers competing for market share, this is also direct competition because they offer similar products targeting the same customers.
5. Step 5: For a coffee shop and a bakery both attracting customers for breakfast, this is indirect competition because they offer different products (coffee vs. baked goods) but compete for the same customer need (breakfast).