Final answer:
Evaluating whether Kinder Morgan would pass on savings from a merger to consumers or leverage a stronger market presence to establish an oligopoly. The outcome on corporate strategy and market regulations. This impacts natural gas market pricing and competition.
Step-by-step explanation:
The new conglomerate like Kinder Morgan would address 'cost savings pass on' to consumers revolves around one key concern in business economics: whether the efficiencies gained through a merger would be shared with consumers through lower prices, or whether the company would instead use its enhanced market power to adopt an oligopoly position. An oligopoly could potentially lead to higher prices, even if costs to provide services decrease due to economies of scale or other merger-related savings. Companies in an oligopoly have the market power to set prices above the competitive level because there are few enough of them that they can avoid undercutting each other's prices.
It is difficult to predict with certainty which path Kinder Morgan would take without more information about its corporate strategy and regulatory constraints. However, in either case, the potential for cost savings or increased market power would significantly impact the natural gas marketplace.