Antonio's is the only restaurant in town that serves Italian food. A new Italian restaurant opens down the street from Antonio's. In a market economy, what is the most likely effect of a competing restaurant opening in the neighborhood?

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Siena Benson

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11 June, 21:54

Antonio's is the only restaurant in town that serves Italian food. A new Italian restaurant opens down the street from Antonio's. In a market economy, what is the most likely effect of a competing restaurant opening in the neighborhood?

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Patrick Wong · Answer 1

In a market economy, the most likely effect of a competing restaurant opening in the neighborhood would be that business is taken away from the existing restaurant