You have just opened a new Lebanese restaurant in your hometown where there are three other Lebanese restaurants. Your restaurant is doing a brisk business and you attribute your success to your distinctive northern Lebanese cuisine using locally grown organic produce. What is likely to happen to your business in the long run?
A) Your success will invite others to open competing restaurants and ultimately your profits will be driven to zero.
B) If you continue to maintain consistent quality, you will be able to earn profits indefinitely.
C) If your success continues, you will be likely to establish a franchise and expand your market size.
D) Your competitors are likely to change their menus to make their products more similar to yours.

Question

Quizplus · Accepted Answer

In the long run, the success of your restaurant is likely to attract new competitors, which will increase competition and drive profits down.

You Have Just Opened a New Lebanese Restaurant in Your