Question: Oil City In the 1990s, Reliance spent $6 billion to build a world-class oil refinery at Jamnagar, India. Now Reliance's expansion will make it the world's biggest producer of gasoline -1.2 million gallons per day, or about 5% of global capacity. Reliance plans to sell the gasoline in the United States and Europe where it's too expensive and politically difficult to build new refineries. The bulked-up Jamnagar will be able to move the market, and Singapore traders expect a drop
a. Explain why the news clip implies that the gasoline market is not perfectly competitive.
b. What barriers to entry might limit competition and allow Reliance to influence the price?