If there are two gas stations in a very small town,then the gas station business there is probably BEST characterized as:
A)perfectly competitive.
B)monopolistically competitive.
C)monopolistic.
D)oligopolistic.

Question

Quizplus · Accepted Answer

An oligopoly is a market structure in which a few large firms dominate the industry. In this case, since there are only two gas stations in a small town, it is likely that they have a significant market share and can potentially collude to control prices, making it an example of an oligopolistic market.

If There Are Two Gas Stations in a Very Small