Question

Panamint Springs, California, is located on State Route 190 (SR190). The community's gas station is the last one for miles in either direction on SR190. This means that this gas station:

a) will earn zero economic profit
b.is a monopoly.
c.has monopoly power.
d.is a natural monopoly.

Answer 1

Answer:

c.has monopoly power.

Explanation:

Panamint Springs has monopoly power, this means that being the last gas station on the root, they have control over price. Most vehicles will have no choice but to buy gas at whatever price the seller fixes.