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

Question

Quizplus · Accepted Answer

In the long run, the success of a business in a competitive market often attracts new entrants, increasing competition and driving profits down to a normal level.

You Have Just Opened a New Italian Restaurant in Your