Question

if there are two gas stations in a very small town then the gasoline industry is probably best characterised as

Answer 1

Answer:

Oligopolistic

Explanation:

An Oligopoly is when there are few large firms operating in an industry.

When there are two firms in an industry, it is known as a duopoly

Oligopolies are characterised by:

1. price setting firms
2. product differentiation
3. profit maximisation
4. high barriers to entry or exit of firms
5. downward sloping demand curve