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Money in the Tank K Two gas stations stand on opposite sides of the road: Rutter's Farm Store and Sheetz gas station. Rutter's doesn't even
Money in the Tank K Two gas stations stand on opposite sides of the road: Rutter's Farm Store and Sheetz gas station. Rutter's doesn't even have to look across the highway to know when Sheetz changes its price for a gallon of gas. When Sheetz raises the price, Rutter's pumps are busy. When Sheetz lowers prices, there's not a car in sight. Both gas stations survive but each has no control over the price. Source: The Mining Journal, May 24, 2008 How do these gas stations decide how much gasoline to make available for sale? These gas stations sell the quantity of gasoline at which O A. price is greater than marginal cost O B. the marginal revenue from the last gallon sold equals its marginal cost O C. economic profit is positive O D. price equals minimum average variable cost
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