Econ Assignment 2.docx - Mathew 1 Jis Mathew Professor...

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Mathew 1Jis MathewProfessor GustafsonECO20008 October 2019Market Structure Assignment1.Mobil is a gas station whose main product is Supreme gasoline. 2.In the area, there are around 5 other gas stations. In the country, there are around hundreds of thousands of gas stations. 3.It is not that easy to start a similar business, as it takes a long process and a lot of money. For example, you must have a Federal ID, a business license, and be able to pay sales tax long term. The barriers to entry are that you may have to build the business from scratch -depending what the circumstances are-, you are in charge of purchasing inventory, payroll, and you have to buy equipment. Barriers to exit are that if the business is not profitable, it is hard to sell, which may make the cost of leaving to be higher.4.Mobil sells gasoline. Each gas station chain has its own gas brand that they sell.5.The business has a reasonable amount of control in changing the price. For example, if

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