Question

Firms face competition when the
good they produce *
O
is in a market with natural barriers
to entry.
O
is in a market with legal barriers to
entry
O
is unique
O has a close substitute.​

Answer 1

Answer:

is in a market with legal barriers to

entry

Answer 2

has a close substitute

Explanation:

In a market with natural barriers to entry it is difficult for other firms to come, therefore competiton for existing firms will be low.

In a market with legal barriers to entry, the situation will be similar to the above.

When the product is unique, that firm will have very little to no competition. There will be no direct competiton and indirect competition could be observed.

For example, when in a  mall, you could go to watch a movie in the theater instead of going to KFC. They are competing even when the products are not the same.

The greatest competition is observed when a firm has a close substitute, for example, the competition between Pepsi and Coca Cola.