Question

Adrian is a talented cook, and he is hoping to open his own restaurant. He has found a space to rent for his restaurant and needs to invest money in paying for the space, decorating, and hiring staff. As he assesses his risks, he realizes that there are many competing restaurants in his area. If his restaurant fails to build a following, he may lose his money. If Adrian chooses not to make the purchase because the risks are too high, he will be -----

Answer 1

Adrian is being cautious about opening his restaurant due to the high competition in the area, which is an example of monopolistic competition. He might explore various funding options like personal investment, loans, or angel investors. His success could lead to monetary gains and offer unique products for consumers.

Step-by-step explanation:

If Adrian chooses not to make the purchase because the risks are too high, he will be exercising caution in the face of potential monopolistic competition. In a market with many competitors, such as the restaurant industry, a new business faces the challenge of differentiating itself to build a customer base.

As a potential business owner, Adrian might consider alternative sources of funding, including personal savings, loans, or seeking angel investors. These investors are willing to inject capital into new, small businesses in exchange for equity. If Adrian's restaurant is successful, he could see significant monetary success, contributing to market diversity by offering unique products that may benefit the consumer.