Use the Information Below to Answer the Following Questions

question 58

Multiple Choice

Use the information below to answer the following questions.
Fact 12.4.2 Exxon Mobil Selling All Its Retail Gas Stations
Exxon Mobil is not alone among Big Oil exiting the retail gas business, a market where profits have gotten tougher as crude oil prices have risen. Gas station owners say they're struggling to turn a profit because while wholesale gasoline prices have risen sharply, they've been unable to raise pump prices fast enough to keep pace.
Source: Houston Chronicle, June 12, 2008
-Refer to Fact 12.4.2. Exxon Mobil is making ________ decision in the retail gasoline market. This decision maximizes Exxon Mobil's economic profit if ________.

• A)a shutdown; price in the retail gas market is less than average total cost
• B)an exit; other retail gasoline firms also leave the market
• C)an exit; price in the retail gas market is less than average total cost
• D)a shutdown; price is less than average variable cost
• E)an irrational; the demand for gasoline decreases

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Definitions:

Alternative Approaches

Different methods or techniques used in a field, particularly when they diverge from traditional or mainstream methodologies.

Study of Personality

The academic and scientific investigation into the characteristics, behaviors, and psychological processes that comprise human individuality.

Personality Psychology

A branch of psychology that studies personality and individual differences.

Important Choices

Decisions that have significant impacts on an individual's life or circumstances, often involving a degree of complexity and long-term consequences.