This topic contains a solution. Click here to go to the answer

Author Question: Phil's filling station gas station operates on a patch on the highway in a patch where there were no ... (Read 124 times)

future617RT

  • Hero Member
  • *****
  • Posts: 543
Phil's filling station gas station operates on a patch on the highway in a patch where there were no gas stations close by. It enjoyed high profits. After a while, Glen's gas another gas station opened up close by. The profits for the first gas station are likely to decrease because
 a. it has to lower prices, since its product is now more price elastic
  b. It has to lower prices since its product is now more price inelastic
  c. due to the increased availability of substitutes
 d. both A&C

Question 2

Is this outcome efficient?
 a. Yes because both of them are maximizing their payoffs
 b. No, because both of them can do better than their current equilibrium
  c. No, because cheating is goodNo, because cheating is good
 d. All of the above



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

matt

  • Sr. Member
  • ****
  • Posts: 344
Answer to Question 1

d

Answer to Question 2

b




future617RT

  • Member
  • Posts: 543
Reply 2 on: Jul 1, 2018
Wow, this really help


dreamfighter72

  • Member
  • Posts: 355
Reply 3 on: Yesterday
Excellent

 

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

For a complete list of videos, visit our video library