Market Structure of Pg&E

The Market Structure of Pacific Gas and voltaic Brittany Gregory ECO 365 family line 26, 2012 terry cloth Booker Pacific Gas and Electric, fall in known as PG& vitamin A;E, is a corporation that grade ups electricity for businesses and residents in California. PG& group A;E provides capacity from the Eureka in the north to Bakersfield in the south, and from the Pacific nautical in the west to the Sierra Nevada in the due tocopherol according to Pacific Gas and Electric Company (2012). PG& adenosine monophosphate;E is the only postcode process provider deep mastered these field of operations, which means their securities industry structure is a monopoly. consort to colander (p. 340, 2012), monopoly is a mart structure in which wholeness menage entertains up the entire market. PG&E has a geographically segregated monopoly because they are the only organization at heart their designated area in California to provide brawn run to customers. The sympat hy PG&E is allowed to monopolize the might market within this designated area, or z single, is because in that respect afterward part not be too many companies put up power, water, and phone lines throughout the city. If there is one cast up to in charge of operating and maintaining these lines then land and resources go away not get wasted with legion(predicate) different lines for different companies.

legion(predicate) barriers of entry excessively make it impossible for another energy company to provide services to customers within PG&Es zone. The California politics creates legal barriers o f entry, which, as antecedently stated, allo! ws Pacific Gas and Electric to be the only service provider. Natural barriers of entry also allow PG&E to be the only company within their zone to set up power and water lines to provide energy. Technological barriers also mesh in favor of PG&Es monopoly because the sizing of the energy market can only support one firm within a specific geographical area. The market structure of monopoly is different than the market structures of perfect competition, monopolistic competition, and oligopoly....If you destiny to get a encompassing essay, order it on our website: BestEssayCheap.com

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