Final answer:
The gasoline industry in Canada is an oligopoly, characterized by a small number of firms that dominate the market, creating high barriers to entry and strategic inter-firm interactions on pricing and output. Option c
Step-by-step explanation:
The competitive nature of the gasoline industry in Canada is best described as an oligopoly. This is because gasoline production and distribution in Canada is controlled by a small number of large companies that dominate the market, similar to examples like the commercial aircraft industry with Boeing and Airbus or the U.S. soft drink industry with Coca-Cola and Pepsi.
These companies face high barriers to entry, making it difficult for new competitors to enter the market, and they make strategic pricing and output decisions that are very much influenced by the actions of their competitors.
Oligopolies are characterized by few firms, and firms in these markets may face the temptation to collaborate, which can lead to outcomes similar to a monopoly, but they may also compete vigorously. The gasoline market often shows signs of both collaboration in terms of price setting and competition in terms of service and location offerings. Option c