Driving to university on Monday morning,Mary noticed that all the gasoline retail stations she passed were selling gasoline at exactly the same price,right down to the decimal point.There are very few sellers of gasoline in her city and they set the price at comparable levels.This is an example of _________.

Question

Quizplus · Accepted Answer

The fact that all gasoline retail stations are selling at exactly the same price suggests that there are only a few sellers in the market, which is known as an oligopoly. This indicates that there is limited competition and the sellers are likely coordinating with each other to set the price, which is known as price-fixing. A monopoly would only have one seller in the market, and while profit may be a motive for the gasoline retailers, it is not a determining factor for the market structure.

Driving to University on Monday Morning,Mary Noticed That All the Gasoline