Posted by YOULANDA on .
Grocery stores and gasoline stations in a large city would appear to be examples of competitive markets: There are numerous relatively small sellers, each seller is a price-taker, and the products are quite similar.
a. How could we argue that these markets are not competitive?
markup is very small, seldom do these sellers have much flexibility on price, espcially in the face of the large sellers who have a wholesale price advantage.