Figure: The Market for Gas Stations (Figure: The Market for Gas Stations) The figure The Market for Gas Stations shows curves facing a typical gas station in a large town.The market is characterized by many firms, differentiated products, easy entry, and easy exit.If the gas station here is typical of others in the community, prices charged by firms in the market are likely to:

Question

Figure: The Market for Gas Stations  (Figure: The Market for Gas Stations) The figure The Market for Gas Stations shows curves facing a typical gas station in a large town.The market is characterized by many firms, differentiated products, easy entry, and easy exit.If the gas station here is typical of others in the community, prices charged by firms in the market are likely to:

Quizplus · Accepted Answer

The market for gas stations is characterized by easy entry and exit, many firms, and differentiated products. This suggests a competitive market, and in a competitive market, prices tend to fall over time due to firms competing for customers. Therefore, if the gas station is typical of others in the community, prices charged by firms in the market are likely to fall in the long run.

Figure: the Market for Gas Stations (Figure: the Market