Why Do Gas Stations near Airports Have a Higher Price

question 114

Multiple Choice

Why do gas stations near airports have a higher price markup than gas stations at busy intersections in the city?

• A)Gas stations at busy intersections have to contend with more competition than gas stations within the city.
• B)Gas stations within the city are less convenient for consumers than gas stations at the airport.
• C)Gas stations at airports face a smaller price elasticity of demand than gas stations in the city.
• D)Gas stations at airports have higher fixed costs than gas stations in the city.

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Definitions:

Risk Sharing

The practice of distributing potential risks among different parties to minimize the impact on any single participant.

Insurance

A contractual arrangement in which one party, the insurer, agrees to compensate another, the insured, for specific losses or damages in exchange for premiums.

Critical Path

The sequence of stages determining the minimum time needed to complete a project, identifying tasks that directly affect the project's duration.

Project Completion

The final phase of a project where all objectives have been achieved, and the project is closed out and handed over.