Question

The town of Utopia has three gas stations. The owners of these gas stations make decisions together about when to raise or lower gas prices. It would be difficult for another gas station to enter this market. Which market structure best describes the market for gas in Utopia

Answer 1

Answer:

The answer is "Oligopoly"

Explanation:

The term Oligopoly is the corporate system with just a limited number of companies, which would keep some other companies for having a significant impact. It's absorption ratio that measures its highest companies ' market percentage.

• In this one of the companies is now a monopoly, and two companies are a duopoly and two or more companies are also an oligopoly.
• It is mostly characterized by its interdependence throughout the activities of the few firms making up an industry.
• It is indeed important because the company tends to make little increase in demand, production, so if the competition is so few.