The level of competition in a given market tends to increase if:

a. Minimum efficient scale of firms increases.

b. The number of of substitutes increases.

c. Significant barriers to exit are imposed.

d. The number of potential entrants decreases.

The higher the number of sellers in a market, the higher the level of competition. Certain factors, such as low barriers to new entrants, increase the number of sellers encouraging competition. Quality products and affordable products are some of the benefits that consumers derive from healthy competition.

Competition in a market tends to rise if (b) the number of substitutes increases. Substitutes are goods that can be used alternatively and still maintain the satisfaction of a consumer.