Bafb1023
Microeconomics
Topic 6
Market Structure (Monopoly) With
Explained Answers 100% Correct
Download To Score A
BAFB1023
MICROECONOMICS
TOPIC 6
MARKET STRUCTURE (MONOPOLY)
Question 1
Tenaga National Berhad (TNB) is the only electric utility company in
Malaysia. It serves over seven million customers throughout Peninsular
Malaysia and also the eastern state of Sabah through Sabah Electricity
Sdn Bhd.
a) Which market structure is TNB is operating in? Why?
The market structure TNB operating is Monopoly. It is the sole provider of electricity to
consumers across the entire country, both on and off the main peninsular. Small, independent
suppliers of electricity sell their output to TNB, which in turn distributes it amongst the
properties in Malaysia.
b) What are the TWO (2) possible barriers to entry that prevent other
companies from entering the market in which TNB operates?
i) Legal barrier, TNB has obtained the patent or license to operate in Malaysia market.
ii) Natural barrier, TNB can access to limited natural resources or raw materia
Microeconomics
Topic 6
Market Structure (Monopoly) With
Explained Answers 100% Correct
Download To Score A
BAFB1023
MICROECONOMICS
TOPIC 6
MARKET STRUCTURE (MONOPOLY)
Question 1
Tenaga National Berhad (TNB) is the only electric utility company in
Malaysia. It serves over seven million customers throughout Peninsular
Malaysia and also the eastern state of Sabah through Sabah Electricity
Sdn Bhd.
a) Which market structure is TNB is operating in? Why?
The market structure TNB operating is Monopoly. It is the sole provider of electricity to
consumers across the entire country, both on and off the main peninsular. Small, independent
suppliers of electricity sell their output to TNB, which in turn distributes it amongst the
properties in Malaysia.
b) What are the TWO (2) possible barriers to entry that prevent other
companies from entering the market in which TNB operates?
i) Legal barrier, TNB has obtained the patent or license to operate in Malaysia market.
ii) Natural barrier, TNB can access to limited natural resources or raw materia
