Which of the following choices relates to the actions of superstores with respect to local shops?

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The chosen answer highlights a significant impact that superstores typically have on local shops. Superstores usually offer a wide variety of products at lower prices due to economies of scale and extensive supply chains. This competitive advantage often attracts customers away from local businesses, which may struggle to match those prices or the variety available at superstores. Consequently, local shops may experience reduced foot traffic and sales, leading to financial difficulties, and in some cases, closure. This dynamic illustrates the broader economic concept of competition and market impact, where large retailers can diminish the viability of smaller, community-oriented businesses. The real-world experience of many local shops struggling to survive in the presence of superstores reinforces this idea, making the correct answer representative of a common scenario in retail markets.

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