Answer to Question #130564 in Microeconomics for Shamaine

Question

Why is Eskom having the ability to influence price and quantity of its output as compared to other countries?

Answer 1

Eskom enjoys monopoly in the country. It is the only agency entrusted with supplying electricity in the country.Therefore they are capable of setting the price and influencing its output as they want unlike other countries where there is more than one company are allowed to supply the same electricity making them difficult to influence the price and quantity of the electricity