An intersection known as Four Corners lies 300 miles from the nearest town.At this intersection are three independently owned gas stations and one small pharmacy.Which of the following is true?
A) The firms are all perfectly competitive because of their size.
B) It would be easier for all four firms to form a cartel than for only the gas stations to do so.
C) The gas stations are monopolistically competitive because there are so few of them that they are almost monopolists.
D) The gas stations are perfectly competitive; the pharmacy is not.
E) The gas stations are oligopolists; the pharmacy is a monopolist.
Correct Answer:
Verified
Q131: Economies of scale yield
A)declining average cost as
Q132: In oligopoly, minimum efficient scale is large
Q133: Oligopolists are more sensitive to the pricing
Q134: Exhibit 10-13 Q135: In an oligopoly, the demand curve facing Q137: The defining characteristic of oligopoly is product Q138: Which of the following is not considered Q139: For firms in an oligopoly to be Q140: In which market structure(s)might firms produce an Q141: A brand name may contribute to oligopolists'
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