Your former college roommate calls you and asks to borrow $10,000 so the he can open a pizza restaurant in his hometown.

Your former college roommate calls you and asks to borrow $10,000 so the he can open a pizza restaurant in his hometown. He acknowledges that there is a high degree of rivalry in this market, that the cost of entry is low, and that there are numerous substitutes for pizza, but he believes that his pizza restaurant will have some sustained competitive advantages. For example, he is going to have sawdust on his floor, a variety of imported beers, and a late-night delivery service. Will you lend him the money? Why or why not?

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