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Answer to Question #57306 in Other Economics for michael greenstreet

Question #57306
what are the benefits of having several gas stations at a major highway intersection?
Expert's answer
The presence of several supplies of fuel at a major highway intersection will result in their competition. It can consequently lead to decrease in fuel price or increase in product quality.
Beside of that several suppliers at one place minimize the emergency factor: if there will be any failure in one of the suppliers, the second one will still be able to cover the fuel demand at the site.

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