In the Middle of the Mountains in Northern BC, There

question 53

Multiple Choice

In the middle of the mountains in northern BC, there are five service stations competing for all the business that exists in this isolated location. When one service station lowers its price on gas, all must follow suit. These service stations are operating in which type of market structure?

• A) oligopoly
• B) monopoly
• C) perfect competition
• D) imperfect competition

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Definitions:

Density of Distribution

The measure of how extensively a product is made available to customers through the distribution channels.

Firm's Products

The goods or services offered by a business to its customers.

Intensive Distribution

A strategy employed by companies to distribute their products through as many outlets as possible to maximize product availability and consumer access.

Exclusive Distribution

A distribution strategy where a supplier grants exclusive rights to a single wholesaler or retailer to sell their product in a specific territory, limiting competition.