Suppose you own a gas station and the only other gas station in town is across the street from your gas station. Explain in general terms the two outcomes that you might expect to happen— in other words, if the gas stations collude, how would that differ from the gas stations competing? How would the profit of your station compare between the two outcomes and how would the prices charged to the consumers compare?
Give several reasons why collusion would be more likely in the above gas station case as compared with a farmer’s market that meets monthly and attracts approximately ten to twenty farmers. Explain each reason
