Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / Which of the following firms is most likely to have market power? a
Which of the following firms is most likely to have market power?
a. a fast food restaurant in a college town
b. a wheat farm in Kansas
c. the last gas station in New Mexico for 100 miles
d. a shoe store in Kentucky
The correct option is:
c. the last gas station in New Mexico for 100 miles
The drivers will not have any other option to buy from, the gas station would enjoy the monopoly status in this 100 miles area. The monopolist is said to have complete control and market power.
