The twin desires of making the highest profit and luring customers away from rival producers often results in competitive demands competitive needs competitive pricing competitive rationing

## Step 1<br />The problem is asking us to identify the term that best describes the situation where businesses strive to make the highest profit and attract customers away from their competitors. The options provided are competitive demands, competitive needs, competitive pricing, and competitive rationing.<br /><br />## Step 2<br />Let's analyze each option:<br />- Competitive demands: This term refers to the demands that businesses must meet to stay competitive, but it doesn't specifically refer to pricing strategies.<br />- Competitive needs: This term is quite broad and could refer to any need that a business must meet to stay competitive, not just pricing.<br />- Competitive pricing: This term refers to the practice of setting prices based on what competitors are charging. This is done to attract customers away from competitors and to maximize profits.<br />- Competitive rationing: This term is not commonly used in business and doesn't specifically refer to pricing strategies.<br /><br />## Step 3<br />Based on the analysis, the term that best fits the situation described in the problem is "competitive pricing". This term specifically refers to the practice of setting prices based on what competitors are charging, which is exactly what the problem is describing.