Question: 2. At a busy intersection, there are four gas stations - one on each corner. Each of the gas stations always charges the same price

2. At a busy intersection, there are four gas stations - one on each corner. Each of the gas stations always charges the same price as the others (that price goes up and down as changes in supply and demand warrant, but each station always charges the same price as the others charge). Does this sameness in pricing indicate that the gas stations have formed a cartel, or is there some other - more likely - explanation for why all of these gas stations charge the same price? Explain your answer.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

2. At a busy intersection, there are four gas stations - one on each corner. Each of the gas stations always charges the same price as the others {that price goes up and down as changes in supply and...

Please help 2. At a busy intersection, there are four gas stations - one on each corner. Each of the gas stations always charges the same price as the others (that price goes up and down as changes...

Question 1 1 Point A number of federal regulations specify the information that must be included in labeling. Which of the following is not specified? Fabric content Safety precautions Ingredient...

Traveller Bus Lines Inc. (TBL) is a wholly owned subsidiary of Canada Transport Enterprises Inc. (CTE). CTE is a publicly traded transportation and communications conglomerate. TBL is primarily in...

4 . Product differentiation in monopolistic competition Consider two gas stations. One is located at a major intersection used by people commuting from populous neighbourhoods to jobs located in the...

supply is what being sold by others 6. Suppose there are four gas stations in your town. The quantity of gas that each one is willing to supply per week at various prices is provided in the...

Published by CQ Press, an Imprint of SAGE Publications, Inc. www.cqresearcher.com Future of Cars Are Americans ready for self-driving vehicles? C ars that drive themselves, long a staple of science...

Files 12:56 PM Mon May 16 25% Unit+2+workbook Q . . . Home Insert Draw Layout Review View Calibri Bold (Body) 36 B I U aAv A v Unit 2-Supply and Demand Name: HR: LAW OF SUPPLY Use the space below to...

Based on chapters 3 & 6 of this module, your Reflection paper should contain 400 words or more. explain what you learned in the corresponding module using your own words. chapter 3 Why Can We Not Get...

Learning Objectives 3-1 By the end of this section, you will be able to: Explain demand, quantity demanded, and the law of demand Identify a demand curve and a supply curve Explain supply, quantity...

What does it mean that culture is hierarchical?

Brandon Outdoor Advertising supplies neon signs to retail stores. A major complaint from its clients is that letters in the signs can burn out and leave the signs looking silly, depending on which...

What is the difference between a Treasury bond, a Treasury note, and a Treasury bill? Of the three, a bond takes the longest to mature ( up to 3 0 years ) . A note takes a longer time to mature than...

Your friend Andy decides to open a business selling cars. He starts with $600,000 of his own money, in exchange for 5,000 shares of stock on January 1, 2019. To help fund the business, you loan Andy...

A health care issue that has been in the news lately is the computerization of health records. This possibility is being approached cautiously because of sensitive privacy and security concerns,...

Dry Air produces mainly residential air conditioners and accessories for air conditioners. One of its main products is the N5 controller. The N5 was produced with a large LCD screen so that seniors...

Write a program to wish happy birthday to a student. Firstly, take today month and day as an input and secondly take birthday as an input in the form of month and day. If the input day and month...

2. How can the expectations we have of a person contribute to the image we have of him / her? Give some examples from your own everyday life.

9. Discuss the statement: If the actors mainly act on the basis of a view of human-ity as driven by self-interest, and incorporate this idea into their models, they may end up with their premises...

5. What does it mean when we say the evaluation comes before the presenta-tion?.