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9 December, 07:42

Monopolist usually makes economic profit in the long run. Explain why Eskom is not a profitable company recently. motivate your answer by referring to the BHP Billiton s contract with Eskom

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  1. 9 December, 08:21
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    It is true that a monopolist leads to a high economic profit. But in here, we are talking about Eskom, which is a government-owned electric company. Eskom is also the largest producer of electricity in Africa. There are many factors affecting why Eskom is not profitable. One is people's abusive behaviors towards the resources. Another thing is the alleged corruption in the business. Regarding BHP Billiton, there have been problems in between two companies.
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