Delish, a moderately priced restaurant, has recently announced intentions to open a restaurant in Boston, MA. Assume that the restaurant market in Boston is characterized by monopolistic competition.
Refer to Scenario 16-4. As a result of the new restaurant, existing restauranteurs in Boston are likely to experience a
Question options:
1 business-stealing externality, which is a positive externality.
2 product-variety externality, which is a positive externality.
3 product-variety externality, which is a negative externality.
4 business-stealing externality, which is a negative externality
