Which of the following firms is most likely to have market power?
A)a grocery store in a metropolitan area
B)a convenience store in a suburb
C)a pub in a college town
D)the only gasoline station in a rural area

Question

Quizplus · Accepted Answer

The only gasoline station in a rural area is likely to have market power due to the absence of close substitutes in the area, allowing the station to potentially charge higher prices without losing significant business.

Which of the Following Firms Is Most Likely to Have