A gas station in the mountains of Oregon has a monopoly over the retail gas market within a 50-mile radius.The station decides not to price discriminate.As a result,all consumers will pay
A) the highest price each consumer is willing to pay.
B) the lowest price possible.
C) a single price.
D) multiple prices.
E) a price that depends on their willingness to pay.

Question

Quizplus · Accepted Answer

Since the gas station has a monopoly and is not engaging in price discrimination, they will charge a single price to all consumers. This price will likely be higher than it would be in a competitive market, as the gas station can charge a higher price due to lack of competition.

A Gas Station in the Mountains of Oregon Has a Monopoly