Concept:Choose the idiom that correctly shows small companies giving up due to tough competition.
Explanation:“Throw up the sponge” means to admit defeat or stop trying.
The sentence says small companies face stiff competition from big companies.
So, they will likely give up or surrender.
“Turn a blind eye” means to ignore something.
“Taste of one’s own medicine” means to get the same bad treatment one gives to others.
“Take a nosedive” means to fall or decline suddenly.
Only “Throw up the sponge” matches the idea of giving up.
Answer:Throw up the sponge