Asked by Kayden Ngenzi on Apr 24, 2024

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Gas stations are not monopolistically competitive because everyone knows the gasoline is the same,regardless of where it is purchased.

Monopolistically Competitive

Describes a market structure where many firms sell products or services that are similar but not identical, allowing for some degree of market power.

  • Understand the concept of monopolistic competition and how it differs from other market structures.
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Zybrea KnightMay 02, 2024
Final Answer :
False
Explanation :
Gas stations can be considered monopolistically competitive because even though the gasoline is the same, each gas station can differentiate itself through location, convenience, branding, customer service, and other factors. This allows them to have some control over pricing and to compete with other gas stations in their area.