1. Define Competition and provide 3 examples of competition. In a paragraph explain why competition is good for an economy? How does intense competition influence a business? If you are a business owner, and a rival moves in next door, what happens?

In a second paragraph look at this same competition from the customer side. Do customers benefit from high-competition or low-competition? Make sure you provide concrete examples to support your claims.

2. What companies/markets have lots of competition? What markets have almost no competition? What differentiates high-competition and low-competition industries?

This brings up the idea of barriers to entry. A barrier to entry is any obstacle (financial, or otherwise) that makes it difficult for new companies to enter a market. Can you think of examples of barriers to entry. Provide an example of barriers of entry for two different markets.