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A business that sells watches that are more inexpensive than the watches a competitor sells is using which type of competition?

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It seems that you have missed the necessary options for this, but anyway, here is the answer. A  business that sells watches that are more inexpensive than the watches a competitor sells is using a type of PRIVATE SECTOR type of competition. Hope this answers your question.

A business that sells watches that are more inexpensive than the watches a competitor sells is using price competition, as a type of competition.

Price competition is the way that a product or service can compete in the marketplace, which includes the process of setting competitive prices to achieve objectives in a market.