Question
Whereas most gas stations in Charlotte are charging $2.75 per gallon, an Exxon station in Uptown is considering raising their price to $3.25. They believe
Whereas most gas stations in Charlotte are charging $2.75 per gallon, an Exxon station in Uptown is considering raising their price to $3.25.
They believe that their "reputation and outstanding customer service" will allow them to charge this price and be profitable.
Would you advise them to increase their price to this level?
Group of answer choices
Yes, because of monopoly power
Yes, because of perfect competition
No, because of monopoly power
No, because of perfect competition
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Macroeconomics
Authors: David Colander
8th edition
978-0078004407, 78004403, 978-0077247171, 77247175, 978-0077307110
