In a Small City,it Is Not Unusual That a Single

Multiple Choice

In a small city,it is not unusual that a single place exists to buy or sell a car.How would we expect the owner of this car dealership to behave?

A) The owner would lower prices on cars because the dealership lacks market power.
B) The owner would lower prices on cars because the dealership has market power.
C) The owner would raise prices on cars because the dealership has market power.
D) The owner would raise prices because the dealership has no market power.
E) The price of cars would be unaffected by the dealership's market power.