Asked by Gloria Cantu on Sep 24, 2024
Verified
A small town in West Texas has one gas station.If the price of oil increases,the price of gas that the station charges will most likely
A) increase.
B) decrease.
C) remains the same.
D) may increase or decrease.
Price Of Oil
The cost per barrel of crude oil, which fluctuates based on geopolitical, supply, and demand factors.
West Texas
A region in the state of Texas known for its significant oil production, desert landscapes, and cultural heritage.
- Comprehend the factors influencing the pricing decisions in monopolies.
- Analyze the influence of external factors, such as oil prices, on monopolistic pricing.
Verified Answer
AB
Alexandra Beckstead3 days ago
Final Answer :
A
Explanation :
The increase in oil prices will increase the cost for the gas station to purchase gasoline from their supplier, which will likely result in an increase in the gas station's prices to maintain profitability.
Learning Objectives
- Comprehend the factors influencing the pricing decisions in monopolies.
- Analyze the influence of external factors, such as oil prices, on monopolistic pricing.