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, let out known as PG& vitamin A;E, is a corporation that come in ups electricity for businesses and residents in California. PG& group A;E provides ability from the Eureka in the north to Bakersfield in the south, and from the Pacific naval 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 zero helper provider deep fling off these field of operations, which means their securities industry structure is a monopoly. fit to colander (p. 340, 2012), monopoly is a market place structure in which star 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 cypher run to customers. The sympathy PG &E is allowed to monopolize the heftiness market within this designated area, or z one, is because in that respect subsequently part not be too many companies move up power, water, and phone lines throughout the city. If there is one attach to in charge of operating and maintaining these lines then land and resources lead 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 of en try, which, as previously stated, allows Pa! cific 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 get on power and water lines to provide energy. Technological barriers also bend in favor of PG&Es monopoly because the size 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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