BEST MARKET STRUCTURE FOR A PIPELINE TO FUNCTION IN .docx

BEST MARKET STRUCTURE FOR A PIPELINE TO
FUNCTION IN
7
Hello Angela,
For Deliverable 5, you were asked to submit a 2 page report
detailing the current market structure and the anticipated market
structure after the pipeline is built. You were also asked to
include tables to show the characteristics of each of the above
market structures and where our firm conforms or does not
conform to the characteristics of the different market structures.
Finally, you were asked to explain the impact on price and
quantity and any pertinent changes to the firm’s pricing strategy
after the change in market structure. Below you will find
detailed comments regarding how your work was graded. Please
let me know if you have any additional questions regarding how
your work was graded.
Marlo
Best Market Structure for a Pipeline to Function in
Angela Petersen
Rasmussen College
Author Note
This paper is being submitted on February 7, 2019, for
Audra Sherwood’s, Managerial Economics course.

Best Market Structure for A Pipeline to Function In
Market structure.
In the current world the type of market that exists in the oil
company is an Oligopoly Market Structure. Why an Oligopoly?
because there are few supplies who deal with an identical
commodity and many buyers. Oligopoly is derived from a
Greek word Oligo means few hence oligopoly is therefore a
market structure where there are few firms. As we all know
there are several firms which deal with the supply of oil, our
company is one of them. When our company completes the
pipeline project the market structure will be forced to change to
a monopoly since we will take over the large market and we will
be able to gain control of the market in the following ways:
First, because we will have control over a large market.
Secondly, we will have cut down on some costs which other
firms in the industry will still be incurring hence they might be
forced out of the market, costs such as transport costs will be
reduced in our firm and this will cause a difference between us
with other firms. To them it will be additional costs which will
make their expenses expensive. Finally, we will gain control
over oil supply. In short, the construction of a pipeline will be
an added advantage to our company since it will cut down on
costs incurred during transportation and moreover it will
increase our market coverage. Comment by Chavarria:
CORRECT: You provided an accurate explanation of the current
market structure, using clear examples and well-defined reasons
for proposal recommendation.
Comment by Chavarria: NEEDS REVISION: You were

asked to provide an accurate explanation of the anticipated
market, using clear examples and well-defined reasons for
proposal recommendation. The future market structure
assumption is inaccurate since the single pipeline would assume
1 firm in complete control of the pipeline production market.
Oligopoly Market Structure
Monopoly Market Structure
Characteristics of the monopoly and oligopoly Market
Structures
Monopoly
Oligopoly
There is only one supplier for the entire market, hence the firm
is the industry.
There are a few suppliers and many buyers.
There is price discrimination since a firm has a monopolistic
power.
There is price rigidity since all firms in the market faces a
kinked curve.
The prices are fixed by the sole supplier.
The prices are determined by the firms in the industry.
The sole company enjoy all profits
There is conflicts among the companies as they fight for the
profits.
The commodity supplied lacks close substitutes.
The few suppliers enjoy a monopoly type of power amongst
themselves.

According to [Baumol, 1961; Yadav, 1995] the characteristics
of the monopoly type of market our company already faces a big
challenge where it is difficult for other firms to enter into the
market because for example the added costs the company will
incur or because the existing company may be enjoying a large
economy of scale. To enter the market as you can clearly see
requires an art of planning. To my opinion building a railway
line as already proposed is a good ideabecause our company
will be able to command a bigger size of the market.(Horowitz,
1981; Belk, 1975.] The result would be that we will pose
competition to the OPEC company that is dominant currently by
first offering affordable prices hence more customers will prefer
to associate themselves with us since we will have offered them
a better alternative.
An oligopoly describes a market structure which is dominated
by only a small number of firms. This results in a state of
limited competition. Our company will have to take advantage
to gain economic power in the market since there will be only
one big threat .It will also mean we will have an equal chance to
make profits and with time we may even overtake the current
monopoly. If we keenly analyze this matter we will discover
that the pipeline will cater for transportation hence the
consumers will not have to hire trucks to collect the oil hence
this will be an added advantage to the consumers who are
located far away from the refinery company and this will be a
big blow to the existing company.

References
Blandina, A. (2018). Can you hear me now? The moderating
effects of procedural justice within consumer-brand
relationships.
Challenges to Urban Transport Sustainability and Smart ...
(n.d.). Retrieved from
https://benthamopen.com/contents/pdf/TOTJ/TOTJ-2-29.pdf
FFCBA
01234
Did not SubmitNo PassCompetence ProficiencyMastery
Not Submitted
Introduction and/or conclusion did
not summarize the current and
future market structures.
Introduction and conclusion
summarized the current and future
market structures.
market structures, using clear
supporting evidence.
supporting evidence and a well-
defined synopsis of the report goals.
Not Submitted
Explanation of current market
included, but unclear or incorrect.

Explanation of current market is
correct.
correct, using clear examples.
correct, using clear examples and
well-defined reasons for proposal
recommendation.
Not Submitted
Explanation of anticipated market
Explanation of anticipated market is
correct.
recommendation.
Not Submitted
Table of characteristics included,
but unclear or incorrect.
Table of characteristics is correct.
Table of characteristics is correct,
and written explanation used clear
examples.
using clear examples and well-
defined reasons for proposal
recommendation.
Not Submitted
Explanation of changes to price,
quantity, and pricing strategy

correct.
recommendation.
FFCBA
Running Head: ORGANIZATIONAL BEHAVIOR 1
ORGANIZATIONAL BEHAVIOR 4
Week 4 Organizational Behavior Journal Entry
Kimberly Davis
Southern New Hampshire University
02/03/2019
How I Will Take Individual Perceptions into Consideration in
Conflict Management
It is worth noting that the perception of a situation is a key
factor that affects the choice of action regarding that situation.

Conflicts in the workplace are inevitable given the fact that
there is diversity and culture differences among the individual
employees. Undeniably, when handling and dealing with
conflicts in the work place, it is my belief that understanding
individual perceptions is vital. Importantly, individuals have
different perspectives of viewing similar situations which can
be said to be the major cause of workplace conflicts (McShane,
Von Glinow, M. A. Y., & Von Glinow, M. A. 2019). In my
place of work, hospital, I take individual perceptions into
consideration in conflict management. I for instance must
understand the underlying factors that have led to the conflict
that relate to a common situation perceived differently.
Moreover, it is important to understand each party’s viewpoint
or perspective regarding the situation. With each party’s
perspective at hand, I would then proceed to communicate the
objectives involved with the conflicting parties so that they feel
that their perspective is taken into consideration and carries the
same weight as the other party’s when managing the conflict.
As noted in this week’s reading, more communication provides
a better chance of defining and articulating objectives within an
organization so that people do not conflict with each other
(Jarden, et al., 2019). It should however be noted that over
communicating can create confusion and have a negative effect
on conflict. It is a balance of understanding perceptions and
communicating the correct information that does favor any one
side of the parties in a conflict. Therefore, in conflict
management in the workplace, it is important to employ
strategies that correct the perceived differences of individuals
in a positive manner making such conflicts to be functional as
opposed to being dysfunctional.
References
Jarden, R. J., Sandham, M., Siegert, R. J., & Koziol‐McLain, J.
(2019). Strengthening workplace well‐being: perceptions of
intensive care nurses. Nursing in critical care.
McShane, S. L., Von Glinow, M. A. Y., & Von Glinow, M. A.

(2019). Organizational Behavior. McGraw-Hill Education.
Wagner, A., Rieger, M. A., Manser, T., Sturm, H., Hardt, J.,
Martus, P., & Hammer, A. (2019). Healthcare professionals’
perspectives on working conditions, leadership, and safety
climate: a cross-sectional study. BMC health services
research, 19(1), 53.
Wiltshire, J., Bourdage, J. S., & Lee, K. (2014). Honesty-
humility and perceptions of organizational politics in
predicting workplace outcomes. Journal of Business and
Psychology, 29(2), 235-251.
Running Head: ORGANIZATIONAL BEHAVIOR 1
ORGANIZATIONAL BEHAVIOR 4
Week 4 Organizational Behavior Journal Entry
Kimberly Davis
02/03/2019

How I Will Take Individual Perceptions into Consideration in
Conflict Management
It is worth noting that the perception of a situation is a key
factor that affects the choice of action regarding that situation.
Conflicts in the workplace are inevitable given the fact that
there is diversity and culture differences among the individual
employees. Undeniably, when handling and dealing with
conflicts in the work place, it is my belief that understanding
individual perceptions is vital. Importantly, individuals have
different perspectives of viewing similar situations which can
be said to be the major cause of workplace conflicts (McShane,
Von Glinow, M. A. Y., & Von Glinow, M. A. 2019). In my
place of work, hospital, I take individual perceptions into
consideration in conflict management. I for instance must
understand the underlying factors that have led to the conflict
that relate to a common situation perceived differently.
Moreover, it is important to understand each party’s viewpoint
or perspective regarding the situation. With each party’s
perspective at hand, I would then proceed to communicate the
objectives involved with the conflicting parties so that they feel
that their perspective is taken into consideration and carries the
same weight as the other party’s when managing the conflict.
As noted in this week’s reading, more communication provides
a better chance of defining and articulating objectives within an
organization so that people do not conflict with each other
(Jarden, et al., 2019). It should however be noted that over
communicating can create confusion and have a negative effect
on conflict. It is a balance of understanding perceptions and
communicating the correct information that does favor any one
side of the parties in a conflict. Therefore, in conflict
management in the workplace, it is important to employ
strategies that correct the perceived differences of individuals
in a positive manner making such conflicts to be functional as

opposed to being dysfunctional.
References
Jarden, R. J., Sandham, M., Siegert, R. J., & Koziol‐McLain, J.
(2019). Strengthening workplace well‐being: perceptions of
intensive care nurses. Nursing in critical care.
McShane, S. L., Von Glinow, M. A. Y., & Von Glinow, M. A.
(2019). Organizational Behavior. McGraw-Hill Education.
Wagner, A., Rieger, M. A., Manser, T., Sturm, H., Hardt, J.,
Martus, P., & Hammer, A. (2019). Healthcare professionals’
perspectives on working conditions, leadership, and safety
climate: a cross-sectional study. BMC health services
research, 19(1), 53.
Psychology, 29(2), 235-251.
Journal 1-3

OL 342
Organizational Structure and Culture
Kimberly Davis
January 13, 2019
Professor Goodman
In the assignments for this week it has given me a lot of
insight into Organizational Structures. It has also given some
insight into the culture that comes with it. One of the structures
that found interesting is organizational behavior and how
pertains to business. Employers like to hire people that are
driven and want to help the company grow.
A company’s culture is how the business is running and
they want people that will follow their culture. They believe in
customer excellence. I work for a very large healthcare
corporation called Partners Healthcare. Although the facility is
large, the organizational make up is Supportive. Partners
encourages support and just culture. In my department I manage
under the supportive and Collegial models. I see that being a
part of the team is crucial in the growth of my department and I
also encourage openness and the open-door policy
I believe that Organizational Structure is good for
companies. It helps with how a company should be ran. A
companies culture is good for the company and employees to
learn their cultures and keep them going.

WORK PLACE PERCEPTION
2
Work Place Perception
Kimberly Davis
01/20/2019
Perception is the process in which an individual is can interpret
a phenomenon around them and the behavior of others in the
same. It can influence how they arrive at a decision. Perception
is common in the workplace; it affects how employees operate,
and how they conduct themselves. The actions and behaviors I
exhibit at my workplace are influenced mainly by perception.
The most common perception is as follows:
Halo effect
Fiske (2018), suggest that this kind of perception is where an
employee may perceive other colleagues and like a particular
aspect about them without a specific reason behind their choice.
For instance, in my workplace, a hospital, there is a strict dress
code (Scrubs) in the Operating Room. I look presentable while

out of the Operating Room. However, my other colleagues dress
casually. My choice of dress is a policy made by my immediate
Director as well as top management. My boss always wears
suitable clothing every day. In my view, her choice of clothing
is a way to communicate to other employees of the need to be
presentable even though there is no strict rule for this aspect at
the company. I have come to admire her clothing choices, and
as a result, I prefer wearing business clothes when I attend
meetings as a way to look professional all times. I only wear
scrubs when I am in the OR.
Skipping lunch breaks
Skipping lunch is common at my current workplace, many
senior employees prefer to eat in the office as a way to save
more time while working. They, therefore, prefer eating a snack
rather than eating lunch before resuming their work. As for the
junior employees they prefer to eat out during lunch break. The
reason for these senior employees to eat lunch in the office is
that they can, in turn, create extra time to do other meaningful
tasks and as a result, they get their work done earlier before a
deadline. And as a result, most of them their work is done in
advance, and the pressure remains with the junior employees.
Although this practice is not in the company policies, it is a
very useful tool for time management; the senior managers
would instead go for a late lunch at after office hour say 5 p.m.
This action has influenced me in deciding to skip meals, this
way I am also able to work on my projects and finish them on
time.
Research
When doing my presentations at my workplace, my senior
supervisors tend to ask questions that may be directly related to
the topic that is being presented. As one way of gauging
whether I can understand the dynamics to a greater extent. This
is a clear message to all the junior employees that they need to
continually research and stay up to date on policy and guideline
changes. This has enabled me to be always research publications
relating to my role at work. As a result, I have developed a

habit for continuous study and research into emerging issues in
healthcare. This has prepared me with the necessary knowledge
which in turn makes me stay ahead of the rest of my colleagues
(Wiltshire et al, 2014).
Reference.
Fiske, S. T. (2018). Controlling other people: The impact of
power on stereotyping. In SocialCognition (pp. 101-115).
Routledge.
Psychology, 29(2), 235-251.
WORK PLACE PERCEPTION
2
Work Place Perception
Kimberly Davis
01/20/2019

Perception is the process in which an individual is can interpret
a phenomenon around them and the behavior of others in the
same. It can influence how they arrive at a decision. Perception
is common in the workplace; it affects how employees operate,
and how they conduct themselves. The actions and behaviors I
exhibit at my workplace are influenced mainly by perception.
The most common perception is as follows:
Halo effect
Fiske (2018), suggest that this kind of perception is where an
employee may perceive other colleagues and like a particular
aspect about them without a specific reason behind their choice.
For instance, in my workplace, a hospital, there is a strict dress
code (Scrubs) in the Operating Room. I look presentable while
out of the Operating Room. However, my other colleagues dress
casually. My choice of dress is a policy made by my immediate
Director as well as top management. My boss always wears
suitable clothing every day. In my view, her choice of clothing
is a way to communicate to other employees of the need to be
presentable even though there is no strict rule for this aspect at
the company. I have come to admire her clothing choices, and
as a result, I prefer wearing business clothes when I attend
meetings as a way to look professional all times. I only wear
scrubs when I am in the OR.
Skipping lunch breaks
Skipping lunch is common at my current workplace, many
senior employees prefer to eat in the office as a way to save
more time while working. They, therefore, prefer eating a snack
rather than eating lunch before resuming their work. As for the
junior employees they prefer to eat out during lunch break. The
reason for these senior employees to eat lunch in the office is
that they can, in turn, create extra time to do other meaningful
tasks and as a result, they get their work done earlier before a
deadline. And as a result, most of them their work is done in
advance, and the pressure remains with the junior employees.
Although this practice is not in the company policies, it is a

very useful tool for time management; the senior managers
would instead go for a late lunch at after office hour say 5 p.m.
This action has influenced me in deciding to skip meals, this
way I am also able to work on my projects and finish them on
time.
Research
When doing my presentations at my workplace, my senior
supervisors tend to ask questions that may be directly related to
the topic that is being presented. As one way of gauging
whether I can understand the dynamics to a greater extent. This
is a clear message to all the junior employees that they need to
continually research and stay up to date on policy and guideline
changes. This has enabled me to be always research publications
relating to my role at work. As a result, I have developed a
habit for continuous study and research into emerging issues in
healthcare. This has prepared me with the necessary knowledge
which in turn makes me stay ahead of the rest of my colleagues
(Wiltshire et al, 2014).
Reference.
Fiske, S. T. (2018). Controlling other people: The impact of
power on stereotyping. In SocialCognition (pp. 101-115).
Routledge.
Psychology, 29(2), 235-251.
Rubric Assessment
Saving...
Saved

This table lists criteria and criteria group name in the first
column. The first row lists level names and includes scores if
the rubric uses a numeric scoring method.CriteriaExemplary
Proficient
Needs Improvement
Not Evident
Evaluate Leadership Theory: Leadership Style
Add Feedback10 points
Meets “Proficient” criteria, and description demonstrates a
nuanced understanding of leadership styles and why they can
change
8.5 points
Describes a leadership style used in the case study and why

there was a shift in leadership style throughout the case study
5.5 points
Describes a leadership style used in the case study and why
there was a shift in leadership style throughout the case study,
but explanation is cursory
0 points
Does not describe a leadership style used in the case study and
why there was a shift in leadership style throughout the case
study
/ 10
/ 10*
Criterion score has been overridden
Evaluate Leadership Theory: Characteristics and Decisions
Meets “Proficient” criteria, and explanation demonstrates keen
insight into how the behaviors of management in the case study
may have influenced the shift in leadership style
8.5 points
Explain the characteristics and decisions of management in the
case study that help explain the shift in leadership style
5.5 points
Explain the characteristics and decisions of management in the
case study that help explain the shift in leadership style, but
explanation is cursory or inappropriate
0 points
Does not explain the characteristics and decisions of

management in the case study that help explain the shift in
leadership style
/ 10
/ 10*
Evaluate Leadership Theory: Internal and External Influences
Meets “Proficient” criteria, and explanation demonstrates keen
insight into how internal and external influences on the
organization in the case study may have influenced the shift in
leadership style
8.5 points
Explains the internal and external influences on the
organization that may have caused the shift in leadership style
5.5 points
Explains the internal and external influences on the
organization that may have caused the shift in leadership style,
but explanation is cursory or inappropriate
0 points
Does not explain the internal and external influences on the
organization that may have caused the shift in leadership style
/ 10
/ 10*

Evaluate Leadership Theory: Relationship
Meets “Proficient” criteria and makes cogent connections
between a leadership style used in the case study and the
decision-making processes
8.5 points
Describes the relationship between a leadership style used in the
case study and the decision-making process
5.5 points
Describes the relationship between a leadership style used in the
case study and the decision-making process, but explanation is
cursory or inappropriate
0 points
Does not describe the relationship between a leadership style
used in the case study and the decision-making process
/ 10
/ 10*
Assess Organizational Culture: Internal Culture
Meets “Proficient” criteria, and the discussion is an especially
comprehensive overview of the internal culture of the
organization
8.5 points
Discusses the internal culture present within the organization
using terms relative to organizational behavior

5.5 points
Discusses the internal culture present within the organization
using terms relative to organizational behavior, but discussion
is cursory or inappropriate
0 points
Does not discuss the internal culture present within the
organization using terms relative to organizational behavior
/ 10
/ 10*
Assess Organizational Culture: Examples
Meets “Proficient” criteria, and identification demonstrates a
nuanced understanding of the internal culture present within the
organization
8.5 points
Identifies specific examples from the case study that
demonstrate the internal culture present within the organization
5.5 points
Identifies examples from the case study that demonstrate the
internal culture present within the organization, but
identification is inappropriate
0 points
Does not identify examples from the case study that
demonstrate the internal culture present within the organization

/ 10
/ 10*
Insights and Conclusions: Complement
Meets “Proficient” criteria, and explanation demonstrates a
nuanced understanding of how leadership styles and culture
complement each other
8.5 points
Explains why the leadership style(s) and internal culture of the
organization complement each other or do not complement each
other
5.5 points
Explains why the leadership style(s) and internal culture of the
organization complement each other or do not complement each
other, but explanation is cursory or inappropriate
0 points
Does not explain why the leadership style(s) and internal
culture of the organization complement each other or do not
complement each other
/ 10
/ 10*
Insights and Conclusions: Influenced Each Other

Meets “Proficient” criteria, and explanation demonstrates a
nuanced understanding of the influence that leadership styles
and culture have on one another within the organization
8.5 points
Explains whether or not the changes in leadership style or
internal culture of the organization influenced each other
5.5 points
Explains whether or not the changes in leadership style or
internal culture of the organization influenced each other, but
explanation is cursory
0 points
Does not explain whether or not the changes in leadership style
or internal culture of the organization influenced each other
/ 10
/ 10*
Insights and Conclusions: Employees
Meets “Proficient” criteria, and explanation provides cogent
example for how employee behavior was influenced by the
leadership styles and internal culture of the organization
8.5 points
Explains how the leadership styles and internal culture of the
organization may have influenced the behavior of the employees
within the organization

5.5 points
Explains how the leadership styles and internal culture of the
organization may have influenced the behavior of the employees
within the organization, but explanation is cursory or
inappropriate
0 points
Does not explain how the leadership styles and internal culture
of the organization may have influenced the behavior of the
employees within the organization
/ 10
/ 10*
Articulation of Response
Submission is free of errors related to citations, grammar,
spelling, syntax, and organization and is presented in a
professional and easy-to-read format
8.5 points
Submission has no major errors related to citations, grammar,
spelling, syntax, or organization
5.5 points
Submission has major errors related to citations, grammar,
spelling, syntax, or organization that negatively impact
readability and articulation of main ideas
0 points
Submission has critical errors related to citations, grammar,
spelling, syntax, or organization that prevent understanding of

ideas
/ 10
/ 10*
Total
Clear Override/ 100
/ 100*
Overall ScoreExemplary *
86 points minimum
Instructors should not modify this row (it will automate from
the scores above). This score represents the average evaluation
across all rubric criteria.CLEAR OVERRIDE
Proficient *
56 points minimum
Needs Improvement *

1 point minimum
Not Evident *
0 points minimum
Overall Feedback
Close

FUNCTION IN
1
Hello Angela,
For Deliverable 5, you were asked to submit a 2 page report
detailing the current market
structure and the anticipated market structure after the pipeline
is built. You were also asked to
include tables to show the characteristics of each of the above
market structures and where our
firm conforms or does not conform to the characteristics of the
different market structures.
Finally, you were asked to explain the impact on price and
quantity and any pertinent changes to
the firm’s pricing strategy after the change in market structure.
Below you will find detailed
comments regarding how your work was graded. Please let me

know if you have any additional
questions regarding how your work was graded.
Marlo
F F C B A
0 1 2 3 4
Did not Submit No Pass Competence Proficiency Mastery
Not Submitted
Introduction and/or conclusion did
not summarize the current and
future market structures.
market structures.
supporting evidence.

supporting evidence and a well-
defined synopsis of the report goals.
Not Submitted
Explanation of current market
correct.
recommendation.
Not Submitted
Explanation of anticipated market
correct.
recommendation.

Not Submitted
Table of characteristics included,
but unclear or incorrect.
Table of characteristics is correct.
and written explanation used clear
examples.
using clear examples and well-
defined reasons for proposal
recommendation.
Not Submitted
correct.
recommendation.
F F C B A

FUNCTION IN
2
Best market structure for a pipeline to function in
Angela Petersen
Rasmussen College
Author Note
This paper is being submitted on February 7, 2019, for Audra
Sherwood’s, Managerial
Economics course.
Best Market Structure For A Pipeline To Function In
Market structure.

FUNCTION IN
3
In the current world the type of market that exists in the oil
company sector is a monopoly. Why
a monopoly? Because, there is one supplier for the entire market
which is our company. Hence
the firm is the industry. In this market there are many buyers
and a seller known as a monopolist
therefore there is no competition in the market. Moreover the
commodity being supplied has no
close substitute that will pose competition. As a result prices
are fixed by the company which
indeed has the monopoly power and this often results to price
discrimination upon the consumer.
When we complete this pipeline project we will have entered
the monopolistic market and as a
result the market structure will absolutely be forced to change
since we will be the second firm to
enter the industry. The market structure will be forced to change
to oligopoly market. Oligopoly
is derived from a Greek word Oligo means few hence oligopoly
is therefore a market structure

where there are few firms. This will give us an added advantage
where we will use the loopholes
to take control of the market by standardizing the price and we
will be able to compete favorably
with the existing company.
Oligopoly Market Structure
Monopoly Market Structure
Commented [MC1]: NEEDS REVISION: You were asked to
provide an accurate explanation of the current market structure,
using clear examples and well-defined reasons for proposal
recommendation. Your response is inaccurate since oil
companies
always exist in market structures that are heavily concentrated,
producing a good that reflects inelastic demand.
Commented [MC2]: NEEDS REVISION: You were asked to
provide an accurate explanation of the anticipated market, using
clear examples and well-defined reasons for proposal
recommendation. The future market structure assumption is
inaccurate since the single pipeline would assume 1 firm in
complete
control of the pipeline production market.
FUNCTION IN
4

Characteristics of the monopoly and oligopoly Market
Structures
Monopoly Oligopoly
There is only one supplier for the entire
market, hence the firm is definitely the
industry.
There are a few suppliers and many buyers.
There is price discrimination since a firm has a
monopolistic power.
There is price rigidity since all firms in the
market faces a kinked curve.
The prices are fixed by the sole supplier. The prices are
determined by the firms in the
industry.
The sole company enjoy all profits There is conflicts among the
companies as they
fight for the profits.
The commodity supplied lacks close

substitutes.
The few suppliers enjoy a monopoly type of
power amongst themselves.
According to [Baumol, 1961; Yadav, 1995] the characteristics
of the monopoly type of
market our company already faces a big challenge where it is
difficult for other firms to enter
FUNCTION IN
5
into the market because for example the added costs the
company will incur or because the
existing company may be enjoying a large economy of scale. To
enter the market as you can
clearly see requires an art of planning. To my opinion building
a railway line as already proposed
is a good ideabecause our company will be able to command a
bigger size of the
market.(Horowitz, 1981; Belk, 1975.] The result would be that
we will pose competition to the
OPEC company that is dominant currently by first offering

affordable prices hence more
customers will prefer to associate themselves with us since we
will have offered them a better
alternative.
An oligopoly describes a market structure which is dominated
by only a small number
of firms. This results in a state of limited competition. Our
company will have to take advantage
to gain economic power in the market since there will be only
one big threat .It will also mean
we will have an equal chance to make profits and with time we
may even overtake the current
monopoly. If we keenly analyze this matter we will discover
that the pipeline will cater for
transportation hence the consumers will not have to hire trucks
to collect the oil hence this will
be an added advantage to the consumers who are located far
away from the refinery company
and this will be a big blow to the existing company.
References

FUNCTION IN
6
Blandina, A. (2018). Can you hear me now? The moderating
effects of procedural justice within
consumer-brand relationships.
Challenges to Urban Transport Sustainability and Smart ...
(n.d.). Retrieved from
https://benthamopen.com/contents/pdf/TOTJ/TOTJ-2-29.pdf
Deliverable 5 - Best Market Structure for a
Pipeline to Function In
Competency
Understand various market structures and impacts upon firms,
consumers,
and government policies.
Course Scenario
Oil Company X is a large oil refinery which has been expanding
and taking on
new investment projects. Recently, they have considered
building a pipeline
that stretches across the United States, from Canada to New
Orleans.

The Cost Department is looking to determine the impact of the
pipeline on the
current market structure, and they have asked you, a team
member of the
department, to submit a report on the expected changing market
structure.
Instructions
As a cost analyst at your firm, you are asked to evaluate the
type of market
you are performing in. Assume the current number of oil
companies exist in
the market. After the pipeline is built, extensive trade
restrictions will
drastically increase Oil Company X's hold on the market.
Submit a 2-page report detailing the current market structure,
and the
anticipated market structure after the pipeline is built. You will
also include
tables to show the characteristics of each of the above market
structures and
where our firm conforms or does not conform to the
characteristics of the
different market structures. Be sure to explain the impact on
price and
quantity, and any pertinent changes to the firm's pricing
strategy after the
change in market structure.
The current market shares of each company are shown below,
before the
pipeline is completed and trade restrictions are implemented.

Format your report to include a title page, introduction,
conclusion, and
references. Include all relevant graphs, equations, and
calculations. Show
your work on calculations to ensure you receive partial credit
for incorrect
answers. No credit will be given if your work is not shown.
Remember to cite
your sources using correct APA format, and also use correct
grammar,
spelling, and formatting.
Grading Rubric
F F C B A
0 1 2 3 4
Not
Submitted No Pass Competence Proficiency Mastery
Not
Submitted
Introduction and/or
conclusion did not
summarize the
current and future
market structures.
Introduction and
conclusion
summarized the
current and future

market structures.
Introduction and
conclusion
summarized the
current and future
market structures,
using clear
supporting
evidence.
Introduction and
conclusion summarized
the current and future
market structures, using
clear supporting evidence
and a well-defined
synopsis of the report
goals.
Not
Submitted
Explanation of
current market is
included, but is
unclear or
incorrect.
Explanation of
current market is
correct.
Explanation of
current market is
correct, using clear

examples.
Explanation of current
market is correct, using
clear examples and well-
defined reasons for
proposal
recommendation.
Not
Submitted
Explanation of
anticipated market
is included, but is
unclear or
incorrect.
Explanation of
anticipated
market is correct.
Explanation of
anticipated market
is correct, using
clear examples.
Explanation of
anticipated market is
examples and well-
defined reasons for
proposal

recommendation.
Not
Submitted
Table of
characteristics is
included, but is
unclear or
incorrect.
Table of
characteristics is
correct.
Table of
characteristics is
correct, and written
explanation used
clear examples.
Table of characteristics is
examples and well-
defined reasons for
proposal
recommendation.
Not
Submitted
Explanation of
changes to price,
quantity, and
pricing strategy are
included, but are

unclear or
incorrect.
Explanation of
changes to price,
quantity, and
pricing strategy
correct.
Explanation of
changes to price,
quantity, and pricing
strategy correct,
using clear
examples.
Explanation of changes
to price, quantity, and
pricing strategy is correct,
using clear examples and
well-defined reasons for
proposal
recommendation.
Deliverable 5 - Best Market Structure for a Pipeline to Function
In

BEST MARKET STRUCTURE FOR A PIPELINE TO FUNCTION IN .docx

Recommended

Recommended

More Related Content

Similar to BEST MARKET STRUCTURE FOR A PIPELINE TO FUNCTION IN .docx

Similar to BEST MARKET STRUCTURE FOR A PIPELINE TO FUNCTION IN .docx (11)

More from tangyechloe

More from tangyechloe (20)

Recently uploaded

Recently uploaded (20)

BEST MARKET STRUCTURE FOR A PIPELINE TO FUNCTION IN .docx