Read the news clip and then answer the following question. Exxon Mobile is makin

Question

Read the news clip and then answer the following question. Exxon Mobile is making decission in the retail gasoline market This decision maximizes Exxon Mobil's economic profit if a shutdown; price is less than average variable cost an exit price in the retail gas market is less than average total cost a shutdown; price in the retail gas market is less than average total cost an exit; other retail gasoline firms also leave the market Exxon Mobil Selling All Its Gas Stations to Distributors Exxon Mobil Corp. said Thursday it's getting out of the retail gasoline business, following other major oil companies... "As the highly competitive fuels marketing business in the U.S. continues to evolve, we believe this transition is the best way for Exxon Mobil to compete and grow in the future," said Ben Solace, the director of Exxon Mobil's U.S. retail sales. Exxon Mobil is not alone among Big Oil exiting the retail gas business, a market where profits have gotten tougher as crude oi prices have risen ... Station owners say they're struggling to turn a profit on gas because while wholesale gasoline prices have risen sharply ..., they've been unable to raise pump prices fast aoagh to keep pace. Houston Chronicle, June 12,2008

Explanation / Answer

c. a shutdown; price in the retail gas market is less than average total cost.

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