Suppose Two Gas Stations Operate at the Same Busy Intersection

question 271

Essay

Suppose two gas stations operate at the same busy intersection. You notice that the posted prices are almost always the same. Assuming that these firms are engaged in tacit price collusion, can we automatically conclude that there is no competition for customers between the two stations?

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Definitions:

Outcomes

The changes, benefits, or impacts that result from certain actions or interventions, often used to measure the effectiveness of programs.

Mission Accomplishment

Achieving the goals and objectives set forth by an organization's mission, effectively fulfilling its defined purpose.

Social Return

A measure of the non-financial impact a project or organization has on society, often assessed in terms of social, environmental, and economic outcomes.

Resource Intensive

Describes processes, projects, or activities that require a large amount of resources, such as time, money, or labor, to be completed successfully.