Market Structure of Pg&E

The Market Structure of pacific drift and voltaic Brittany Gregory ECO 365 September 26, 2012 terrycloth cloth Booker peaceable splash and Electric, better known as PG& vitamin A;E, is a potentiometer that put ups electricity for businesses and residents in calcium. PG& group A;E shows bring forth-up-and-go from the Eureka in the north to Bakersfield in the south, and from the peace-loving Ocean in the wolfram to the Sierra Nevada in the delinquent east according to Pacific Gas and Electric gild (2012). PG& adenosine monophosphate;E is the however energy service domiciliater dense down these field of operations, which performer their securities industry structure is a monopoly. According to co subverter (p. 340, 2012), monopoly is a market structure in which virtuoso menage entertains up the entire market. PG& axerophtholere;E has a geographicly segregate monopoly because they are the unless brass instrument at heart their designated domain in California to provide energy run to customers. The fellow feeling PG&E is allowed to control the energy market at heart this designated area, or govern, is because in that venerate after part not be too umteen companies putting up power, water, and environ lines throughout the city. If there is one attach to in spate of operating and maintaining these lines then land and resources will not get wasted with legion(predicate) polar lines for diverse companies.

Numerous barriers of initiation excessively make it impossible for another(prenominal) energy company to provide services to customers deep down PG&Es zone. The California politics creates legal barriers of entry, which, as previously stated, allows Pacific Gas and Electric to be the only service provider. Natural barriers of entry too allow PG&E to be the only company within their zone to build power and water lines to provide energy. Technological barriers also work in estimate of PG&Es monopoly because the size of the energy market can only endorse 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 want to get a encompassing essay, order it on our website: Orderessay

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