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Your friend asked you to loan her $50,000 so that she can start a pizza restaurant in her hometown. In justifying this loan, she argues that there must be significant demand for pizza and other fast food in her hometown because there are lots of such restaurants already there and three or four new ones are opening each month. She also argues that demand for convenience food will continue to increase and she points to the large number of firms that now sell frozen dinners in grocery stores. Will you lend her the money? Why or why not?

Operation Management, Management Studies

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