Monopoly Market Structure

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  • Topic: Natural gas, Duke Energy, Liquefied natural gas
  • Pages : 6 (1271 words )
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  • Published : December 15, 2012
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 Information to use as a guide Assignment 2
 
 
  
A monopoly exists when a business tends to control the entire industry, and can charge customers whatever it desires for the service, because it knows that customers have a need for the service; despite the charge. A business with a monopoly is able to charge unreasonably high prices in the absence of the competition that generally drives prices down. Consumers, in turn, would have no alternatives, and would have to pay the high prices or do without the goods or services. Since the late nineteenth century the U.S. government has tried to prevent companies from growing so large and powerful whether on its own or through a merger, a buyout, or a takeover that it could establish a monopoly in its industry. In a monopoly industry the business tends to control the entire industry, and can charge customers whatever it desires for the service, because it knows that customers have a need for the service; despite the charge. Describe the business

South Carolina Electric and Gas (SCE&G) knows energy and how to make it work for you at home, in business and in your community. SCE&G is the principal subsidiary of SCANA Corporation energy-based holding company whose businesses include regulated electric and natural gas utility operations, telecommunications and other non-regulated energy-related businesses. SCE & G serve approximately 319,000 natural gas customers in South Carolina. We also generate, transmit, distribute and sell electricity to approximately 668,000 retail and wholesale customers throughout the state. Per the SCE&G site for 160 years, SCANA Corporation has been an energizing force throughout South Carolina, North Carolina and Georgia – bringing power and fuel to homes and businesses, stimulating economic growth, spurring innovation, enriching local communities through environmental initiatives and educational programs, and lending a helping hand to the less fortunate. Hypothesize the basic short-run and long-run behaviors of the model The SCE&G a SCANA Company focused on working collectively with a clear vision for the future; providing energy and other various products to retail markets in the Southeast area and serve customers offering professionalism, and reliability. The long-range electric sales forecast for the Company are forecast for seven classes of service: residential, commercial, industrial, street lighting, other public authorities, municipal and cooperatives. These classes were disaggregated into appropriate subgroups where data was available and there were notable differences in the data patterns. The residential, commercial, and industrial classes are considered the major classes of service and account for over 90% of total territorial sales. The short-range electric sales forecasts for electric customers, average usage, and total usage according to company. Residential customers were classified by housing type (single family, multi-family, and mobile homes) and by whether or not they use electric space heating. The sales, weather, industrial production indices, and time dependent variables were used in the short range forecast. Explain how to modify the data to make relevant decisions for managers Forecasting for electric sales require independent variables; economic and demographic. Global Insights, Incorporation assist with this process. Price and weather variables were obtained based on previous historical data. The trend projections developed by Global Insights were differentiated by slow, steady growth by the means of all potential paths, which could potentially follow if subject to no major disruptions; significant shocks in oil prices, unexpected swings in policy, or extreme rapid increases in demand. Economic assumptions of summer temperatures (June, July, and August); and short range temperatures of the previous year during the winter months (December, January, and February) are assumed to...
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