Answer to Question #221655 in Microeconomics for Mulweli

Question

Give two typical examples of near monopolies

Answer 1

A standard service provider monopolist means the economy does not have a constricted replacement. Segmental limits should be significant; i.e. different companies cannot effectively access the market and make the excellent. Patents and laws are present or negligible, and the market value of that good or service is sometimes lower and anticompetitive. Two instances of almost monopoly include: -

1. Eskom.

Eskom has been one of South Africa's major monopolies; it offers propagation and is a large electric distribution component in South Africa. As the electricity sector does not have a new entrant, citizens must rely solely upon on Eskom. Even if they are complex and expensive, individuals must purchase Eskom services. This is why Eskom's market receives excess profits.

1. SA Breweries' (SAB).

Manufacturing is another classic examples of monopolies of South Africa. In terms of breweies in South Africa, there are some small beer production companies but their sales volume is so modest that it is extremely difficult to acknowledge.