Final answer:
A favorable position for a business over competitors often stems from unique opportunities, such as a strategic location, access to resources, technological advantages, or lower costs. However, these advantages can attract new competitors, which increases market competition.
Step-by-step explanation:
A situation that gives a business a favorable position over competitors is when the business has access to unique opportunities and advantages. These can be natural conditions that are conducive to production, like arable land or a strategic location, access to a large labor pool, superior technology, or a unique product offering. For example, a unique barbecue sauce at a restaurant, or a highly reputed laundry detergent can create a competitive edge. However, in a competitive market, such advantages often attract new entrants, leading to increased competition. Strategies like lowering input prices, improving technology, benefiting from lower taxes, or less costly regulations can also provide a business with a competitive edge over others.