Answer to Question #212159 in Macroeconomics for thato

Question

characteristics of denel as a monopoly

Answer 1

Profit maximizer - Denel as a monopoly its product offerings dominate the whole industry.

Price maker - Denel has total or near total control of market.

Single seller - since Denel is a state owned company with the South African Government as the sole shareholder.

High barriers to entry - Denel is a vital state organ where other firms in the industry can access easily.

Price discrimination - since Denel is a monopoly in this case, this gives Denel right to charge customers different prices for the same product or service.