I’m a hardcore football fans but everytime I
have to go to mamak stall to watch football matches because my house don’t have
Astro!!! It’s too EXPENSIVE !!!!
Astro is the monopoly firm in Malaysia television
broadcasting industry which means the only choice for Malaysian TV households.
Monopoly is a market structure that only a
single firm producing a particular good and service. The products used to be
unique and there is restricted for new firms to joins the industry. This is why
Astro can charges and increase the price as they like (this is also the reason my
house don’t have ASTRO!!!) and their revenue still keep increasing every year because
they earn supernormal profit!!!
From the graph below shows that the demand in monopoly is price inelastic and earn maximise profit when Marginal Revenue = Marginal Cost !!!
(Graph of Monopoly)
The other disadvantage of monopoly is inefficiency
in social welfare. Because of no close substitute in market so they not really
need to care about their customers feeling and also no necessary to keep
upgrade their products…..
(Happened every time while raining...)
Lastly, Government should take some action
or create some laws about “anti-monopoly” to regulate the market.
And I hope one day I can watch football
matches in my home~~~
Reference List :
http://www.thesundaily.my/news/745946
http://www.astro.com.my/portal/about-astro/
http://www.thestar.com.my/Business/Business-News/2013/06/14/Analysts-upbeat-on-Astros-advertising-revenue-Arpu.aspx
-Teng Ying Ze
Reference List :
http://www.thesundaily.my/news/745946
http://www.astro.com.my/portal/about-astro/
http://www.thestar.com.my/Business/Business-News/2013/06/14/Analysts-upbeat-on-Astros-advertising-revenue-Arpu.aspx
From my opinion, astro should take action as fast as possible because this issue has drag year by year, so i hope the PIHAK berkuasa(astro) will concern about it
ReplyDeleteClear information!!!is monopoly good to consumers?
ReplyDeleteChai Yon Xing- YA!!! Astro should care about their customers feeling!!!
ReplyDeleteWoon Pow Lee- Monopoly is not really benefits to consumers because they charges the price higher and their services might not be so good because lacks of competitor....
ReplyDeleteOther than the disadvantage, is there any advantage for monopoly?
ReplyDeleteOf course, there is also some advantages for monopoly!For example,international competitiveness,monopoly firms usually are more powerful because they earn supernormal profit,thus they have enough power to compete in the global market.Other than that this is economies of scale,it can increased output will lead to a decrease in average costs of production.
ReplyDelete