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Suppose That You Have Noticed That Almost All of the Car

Question 88

Multiple Choice

Suppose that you have noticed that almost all of the car dealers in your city are located along a three-block stretch of the same street. A likely reason for this clustering of car dealers is that:


A) the dealers are better able to form a cartel.
B) each dealer is attempting to locate closest to the customers.
C) there is a social norm in that city that dealers follow in choosing location.
D) each dealer sells a different brand of car, so they are not competitors and do not have to be concerned about the other dealers' locations.

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