Answer to Question #220718 in Microeconomics for Naledi

Question

Denel characteristic

Answer 1

Solution:

Denel can be regarded as a public company operating as a private company with its main activities involving defence such as manufacturing, development, and research of armaments and associated products or systems.

It is a public monopoly dealing with products that other consumer products and services have no capability or intention to undertake. Denel is the largest manufacturer of defence products and equipment’s in South Africa, including undertaking operations in the military aerospace and landward defence environment. Denel's main shareholder is South Africa’s government and it is overseen by the Board of Directors appointed by the Minister for Public Enterprises.