A small town located 30 miles from the nearest town has only one service station. Is the service station a monopoly? Why or why not?
Ответы
Ответ:
The service station in the small town may or may not be a monopoly, depending on the presence or absence of competition.
If the service station is the only provider of fuel and other services in the town and there are no other options available, then it can be considered a monopoly. In this case, the service station has exclusive control over the market, giving it the power to set prices and dictate the terms of service without fear of competition.
However, if there are other service stations in nearby towns within a reasonable distance, then the service station in the small town may not be a monopoly. Competition from other service stations can provide consumers with alternative choices and keep prices and services in check.
It's important to consider the market dynamics and the presence or absence of competition to determine whether the service station in the small town is a monopoly or not.