Answer:
C. The high population of Redville ensures that O'Sullivan's has a grant chance for success.
Step-by-step explanation:
From the case given, we have some assertions:
1. Memmie states that the greater the population near a restaurant, the higher the number of customers and the greater chance its popularity will spread through words of mouth.
2. Sam state that the more people in an area, the more restaurants there'll be in that area, and so the more competition each one faces.
From the foregoing, we can establish that both Memmie and Sam agree that general increase in the number of people in a product environment is likely to improve the product's popularity and its eventual success.
However, there's a clear departure from the above assumption owing by the observation raised by Sam. While nothing the importance of population, Sam pointed out that this might not be a huge determining force in that:
1. The more people in an area - population, the more the number of restaurants willing to take advantage of this, and thus the more the competition. As at now, there are 12 of such restaurants in Redville.
2. Point number one above will bring about a stiff competition which may put strain on the positives a big population could bring.
Evidently, while giving a blanket ticket of success to a restaurant, Memmie fails to critically evaluate the business environment and the competitive nature of the industry as a basis for determining the offers success. This is unlike Sam, as Sam has brought into fore other critical issues that need to be carefully looked at to conclude a firm can be successful.