Suppose the Market for Gasoline Retailing (Gas Stations)in an Island

question 120

Multiple Choice

Suppose the market for gasoline retailing (gas stations) in an island economy has 12 firms.The two largest firms each account for 30% of sales,the third accounts for 15%,the fourth for 7%,the fifth for 4% and the remaining firms for 2% each.Which of the following statements best describes the structure of this local industry?

• A)This industry is an oligopoly.
• B)This industry is perfectly competitive.
• C)This industry is a monopoly.
• D)This industry is monopolistically competitive.
• E)Either A or D could be correct.

---

Definitions:

Double-Blind Design

An experimental design in which neither the participants nor the experimenters know who is receiving a particular treatment.

External Validity

The extent to which the results of a study can be generalized or extended to other contexts or populations.

Nickerson And Adams

Researchers known for conducting influential studies on memory and recognition, notably exploring people's ability to recall features of common objects.

Visual Memory

The cognitive ability to remember visual information such as shapes, faces, and colors.