One business attracting another similar business resulting in increased profits is an example of which principle of value?

The principle of value that describes one business attracting another similar business, leading to increased profits, is rooted in the idea of competition. When businesses operate in close proximity and serve similar markets, they can create a more robust economic environment by attracting more customers collectively. This phenomenon can lead to greater market visibility and increased foot traffic, benefiting all businesses involved.

By drawing in customers who may not have visited the area otherwise, these competing businesses enhance their overall appeal and profitability. It demonstrates the concept of competitive advantage, where the presence of similar businesses can result in greater economic activity than if they were located separately.

In contrast, the other principles address different aspects of value. Contribution pertains to how an individual component adds to the value of a whole property. Progression involves the notion that properties of lower value can increase in value when they are located among higher-value properties. Assemblage refers to the process of combining two or more properties to create a single, higher-value parcel. While these principles are relevant in their contexts, they do not capture the essence of how competition among similar businesses can amplify profits through their co-location.