Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: The Market for Gas Stations
-(Figure: The Market for Gas Stations) Look at the figure The Market for Gas Stations. Assume that the market for gas stations is characterized by many firms, differentiated products, easy entry, and easy exit. For the typical gas station the profit-maximizing price would be:

A) P₁.
B) P₂.
C) P₃.
D) Not enough information is given to answer the question.