analyse eskom in terms of the characteristics of a monopoly

Expert Writer Answer 1

Eskom is a South African public company which handles the electricity for public usage in the South Africa. Eskom is the stand-alone generator of electricity in South Africa which holds the monopoly over the power plants and transmission. Eskom managed more than 10 power stations in South Africa. South Africa experienced an electricity crisis despite its number of power stations.

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Expert Writer Answer 2

Some of the characteristics of a monopoly are: Single firm selling all output in a market Unique product Restrictions on entry and exit of firms in a industry .Such barriers include patents, licences, the limited size of the market and exclusive ownership of raw materials. However, in the modern era of globalisation, local monopolists are increasingly subject to international competition which limits their monopoly power Specialised information about the production techniches unavailable to other potential producers All the above characteristics imply that monopoly has an extensive market control In south Africa we have several examples of monopolies perhaps the best known example is Eskom is a south African electricity public utility, established in 1923 as the Electricity Supply Commission (ESCOM)by the government of south Africa in terms of the Electricity Act (1922).If you want Electricity in your house you cannot go to n. of suppliers You must either ask Eskom or Do without electricity Eskom operates a number of notable power stations, including kendal power station and koeberg nuclear power station in the Cape Province, the only nuclear power plant in Africa. The company is divided into Generation, Transmission and Distribution divisions and together Eskom…

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