Water in a Country

In Trinidad WASA is a monopoly which says that it is the only business firm who supplies body of water. There are no close substitues to it and therefrom any initiative to promote the performance of the supply would be welcomed. Government in this oddball purposely placed restriction therefore entry by early(a) firms are not permitted to enter the marketplaceplace.WASA has the only rights to head in the selling of this particular product. The barriers to gain entry into this market can be the result of legal restiction, economies of scale and self-command of an essential resource.

A monopoly sometimes emerges naturally when a firm experiences economies of scale as reflected by the downward-sloping, long-run average cost curve. In these situations, a single firm can sometimes supply market demand at a bring low average cost per unit than could two or more(prenominal) firms at smaller rates of bring output.

When a monopoly is born out of a natural resource it is called a natural monopoly and it is an reward to other firms who would try to produce a product only do not have these benefits automatically results in a natural blocked entry into this market.

Because a monopoly produces for the entire market the demand for the good is market demand which would attract gamey revenue. This is just matchless benefit of a monopoly. It can maximize profit being the price discombobulater of that good.



In other countries there are price regualting bodies which control price for the buyers. Although ones firm who has the monopoly that firm is not certain to make a profit . Most cases a profit is generated as expressed in the diagram below.





How does it affect your life?

This amount of money outlined by the Government to improve the efficiency of the water system would definitely be an advantage to the citizens of Trinidad and Tobago. Often ample water goes without prior warning by the authorities and therefore puts one under stress to adapt to the situation. One may ask why not have a take for in the water tank, but in...If you want to get a full essay, order it on our website: Orderessay



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