Question: Money in the Tank Two gas stations stand on opposite sides of the road: Rutter's Farm Store and Sheetz gas station. Rutter's doesn't even have to look across the highway to know when Sheetz changes its price for a gallon of gas. When Sheetz raises the price, Rutter's pumps are busy. When Sheetz lowers prices, there's not a car in sight. Both gas stations survive, but each has no control over the price.
In what type of market do these gas stations operate? What determines the price of gasoline and the marginal revenue from gasoline?