An issue which has led to complaints against fuel retai

An issue which has led to complaints against fuel retailers is the fact that prices follow a weekly cycle. For example prices are often higher on Saturdays and lower on Tuesdays. Suppose you are a petrol retailer and are presenting an argument to the ACCC that this is perfectly reasonable and does not reflect collusion. You have collected the demand information shown in the table below and can show you have a constant marginal cost of $0.90/litre. Show that a profit maximising firm would charge a higher price on Saturday than Tuesday. Illustrate with a diagram. Why might demand systematically differ across days of the week? (4 marks) [200 words + diagram(s)]

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