A) The integrated ownership of pipelines was initially used by some oil companies to gain control of oil-producing area. How did they use their market power to gain market control? What other reasons can be offered for integrated ownership? Are these reasons valid in today’s business environment? B) The pipeline industry has approximately 100 companies, as compared to the motor carrier industry with more than 50,000. How do you account for this difference, given the fact that they both carry approximately the same volume of intercity ton-miles? C) The typical pipeline company has high fixed costs. What economic factors account for this situation? What special problems does this present?
A) The integrated ownership of pipelines was initially used by some oil companies to gain control of oil-producing area. How did they use their market power to gain market control? What other reasons can be offered for integrated ownership? Are these reasons valid in today’s business environment? B) The pipeline industry has approximately 100 companies, as compared to the motor carrier industry with more than 50,000. How do you account for this difference, given the fact that they both carry approximately the same volume of intercity ton-miles? C) The typical pipeline company has high fixed costs. What economic factors account for this situation? What special problems does this present?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A) The integrated ownership of pipelines was initially used by some oil companies to gain control of oil-producing area. How did they use their market power to gain market control? What other reasons can be offered for integrated ownership? Are these reasons valid in today’s business environment?
B) The pipeline industry has approximately 100 companies, as compared to the motor carrier industry with more than 50,000. How do you account for this difference, given the fact that they both carry approximately the same volume of intercity ton-miles?
C) The typical pipeline company has high fixed costs. What economic factors account for this situation? What special problems does this present?
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