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lidiya
1 month ago
9

Phil’s filling station gas station operates on a patch on the highway in a patch where there were no gas stations close by. It e

njoyed high profits. After a while, Glen’s gas another gas station opened up close by. The profits for the first gas station are likely to decrease because a. ​it has to lower prices, since its product is now more price elastic b. ​It has to lower prices since its product is now more price inelastic c. ​due to the increased availability of substitutes d. ​both A&C
Business
1 answer:
arsen [3.4K]1 month ago
7 0
Both A and C Explanation: Phil's gas station operated solo on a highway stretch with no nearby competition and enjoyed high profits. However, a new gas station was later established in close proximity, leading to a decline in Phil’s profits. The decrease stemmed from the need to reduce prices to boost demand, as customers started opting for the alternatives available. Thus, both factors would contribute to a profit decline.
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