Fundamentals of Managerial Economics
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Karl Brinkhoff MGT.360 Final Paper The Rising Price of Gasoline: What Factors Are Involved With This Economic Issue? The year 2004 has seen a steady climb in the price of gasoline. From January of 2004 to May of 2004 there has been a jump of approximately .50 cents a gallon (Energy Information Administration). For many Americans high gas prices have been a hot issue with them, and there seems to be no rhyme or reason to these fluctuations. With the continued popularity of the sport-utility vehicle and the high volume of gasoline it requires, the issue of high gas prices doesn't seem to be going away anytime soon. Many factors go into determining the price of gasoline. This paper will explore the various factors involved to determine the price of gas and attempt to gain a better understanding on how it arrives at its decision. The gasoline industry is an oligopoly. In Mark Hirschey's...


