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Economic Principles -- Perfectly Competitive Markets
Generally, gasoline and related petroleum products intended for automobiles are all products whose sale in the United States represents a close approximation but not necessarily an exact model of a perfectly competitive market. That is because entering the market is not completely barrier-free in that it requires a significant investment of capital. In that regard, the primary barrier to entering the market is the overhead cost associated with establishing the gas station facilities and qualifying for government licensing.
However, that is not substantially different from many other industries or even the simplest markets because virtually every business in modern American society requires the purchase or lease of land or facilities. Therefore, the existence of these barriers is not, in principle, enough to take gasoline and petroleum sales out of the perfect market description because the barrier is equally surmountable by anybody with sufficient capital...
Provided the proprietor has the necessary capital, anybody can open a gas station and begin selling gas and other petroleum products such as motor oil. The consumers who purchase gasoline and other petroleum products are almost exclusively automobile owners who drive their vehicle regularly. Domestically, the sellers are the major oil companies at the wholesale level and the gas station owners at the local level.
Gasoline station owners are price takers rather than price setters because they all purchase their gasoline at either the exact same price or very close to the exact same prices set by their wholesale suppliers. The wholesale prices of gasoline are set by overseas suppliers and, increasingly, by fluctuations in the price of crude oil attributable to market speculation on Wall Street. As a result, local gasoline sellers experience price fluctuations caused by large investment in oil futures by market participants who may never…
Petroleum Companies through Agility Measurement The purpose of this paper is to evaluate petroleum firms and focus on their agility factors, after that a conclusion can be achieved that specifies which one of the firms are more agile as compared to the rest. In this paper, a questionnaire will be built which will help in analyzing the petroleum companies. The measurement of agility here will be dependent on four main
) Perhaps even more important to the current issues is the fact that the Ibrahim Index of African Governance, with ranks African governments on the ability of those governments to deliver needed goods to their people. This index ranks Ghana relatively high on human development and safety and security and human rights protections. Again, it is important to stress that such political assessments are also economic ones. The fact that Ghana ranks
Petroleum Exporting Countries (OPEC). Specifically it will discuss how the United States deals with OPEC and oil prices, and how the United States has failed to create a viable energy policy that will allow the country not to depend on OPEC's control of the oil market. OPEC is a group of countries that export oil around the world that have banded together to control the supply and price of
Petroleum Hydrocarbon Power Plant in Texas The petroleum industry is one of the most profitable industries across the globe since it involves domestic exploration, creation, and transportation of oil and gas. This process is usually carried out through a network of distribution facilities and systems that focus on exploration, production, and transportation of petroleum products. Given the potential success and profitability of this business, developing a petroleum hydrocarbon-based power plant
Alternative Sources of Energy Petroleum, commonly referred to as oil, is the main source of energy for the entire planet, but as it is a finite resource, there exists only so much of it. As a result of its becoming scarce, oil has become a precious commodity that is the source of much competition among nations. In the 21st century the world is frantically searching for alternative sources of energy other
BP Caucasus Region British Petroleum Caucasus Region BP or British Petroleum is a multinational Oil and Gas firm that carries out exploration missions, refinement and supply of fuels to the world. BP is the third largest company in the energy sector and fourth largest among all multinationals. These titles were awarded to the firm on the basis of the sales or revenue amounts of the multinational energy companies in 2011. Other than