2. Competitors, and new companies would just continue to stay in business to try and get an economic edge.
3. Even if such an unlikely scenario came true, it would only produce short term effects for the most part - other than being remembered as a really big event. It would provide the public reasons to vote on more publicly managed businesses that would reliably offer services, thus creating some opposite effects of what the business owners wanted in the first place, and it would be significantly more competitive.
I had an urge to discuss GDP in depth (Not that I view GDP as being a good indicator of prosperity), but that would be off topic.