Oil Industry in the Philippines The Philippines oil industry has traditionally been dominated by the Big Three
Question:
Oil Industry in the Philippines The Philippines oil industry has traditionally been dominated by the Big Three refineries:
Shell, Petron, and Caltex. To maintain market share, these firms sold petroleum and diesel at a price below average variable cost, undercutting competition from new players.
a. Explain why the news clip implies that the oil industry in the Philippines was not perfectly competitive.
b. Were the Big Three refineries competing fairly with new entrants? What barriers to entry may have limited competition and allowed the Big Three refineries to influence the oil price?
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a The news clip gives an insight that the oil industry in the Philippines was not perfectly competitive because the market was dominated by the three ...View the full answer
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