Problem 5. (Not Graded) There are two gas stations located directly across the street from one another, an Exxon station and a Sunoco station. These two stations compete by setting the price per gallon of their gasoline (i.e. Bertrand price compe- tition). Assume that their supply chains are sufciently similar that they have the same cost functions. 1. What can you say about the relative prices set by these two gas stations? 2. What can you say about the equilibrium markup (price minus marginal cost) of each gas station? 3. How does this predicted outcome compare to a perfectly competitive scenario? 4. If we observed that the price of the Exxon station was 15 cents per gallon higher than the price at the Sunoco station, which might be true about the two gas stations