20 Exxon Mobil Selling All Its Retail Outlets Exxon Mobil is not alone among Big Oil exiting the retail business, a market where profits have gotten tougher as crude oil prices have risen. Owners say they’re struggling to turn a profit because while wholesale petrol prices have risen sharply, they’ve been unable to raise pump prices fast enough to keep pace.

Source: Houston Chronicle, 12 June 2008 a Is Exxon Mobil making a shutdown or exit decision in the retail petrol market?

b Under what conditions will this decision maximise Exxon Mobil’s economic profit?

c How might Exxon Mobil’s decision affect the economic profit of other petrol retailers?