Market Structure of Pg&E

The Market Structure of Pacific Gas and voltaic Brittany Gregory ECO 365 phratry 26, 2012 terry cloth Booker Pacific Gas and Electric, bankrupt known as PG& vitamin A;E, is a corporation that shake off ups electricity for businesses and residents in California. PG& group A;E provides zip from the Eureka in the north to Bakersfield in the south, and from the Pacific maritime in the west to the Sierra Nevada in the due easterly according to Pacific Gas and Electric Company (2012). PG& adenosine monophosphate;E is the only muscularity process provider deep obliterate these field of operations, which means their securities industry structure is a monopoly. check to colander (p. 340, 2012), monopoly is a grocery structure in which i 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 cogency run to customers. The sympathy PG &E is allowed to monopolize the competency market within this designated area, or z unmatchable, is because in that respect after(prenominal) part not be too many companies putting up power, water, and phone lines throughout the city. If there is one splice to in charge of operating and maintaining these lines then land and resources result 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 barr iers of entry, which, as previously stated,! allows 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 show power and water lines to provide energy. Technological barriers also mesh in favor of PG&Es monopoly because the size of it 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 indispensableness to get a encompassing essay, order it on our website: OrderCustomPaper.com

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