Question 1

Tenaga National Berhad (TNB) is the only electric utility company in Malaysia. It serves over seven million customersthroughout Peninsular Malaysia and also the eastern state of Sabah through Sabah Electricity Sdn Bhd.

a)Which market structure is TNB is operating in? Why?

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b)What are theTWO (2)possible barriers to entry that prevent other companies from entering the market in which TNB operates?

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c)How does TNB exercise price discrimination in the market it operates? GiveTWO (2)examples.(4 marks)

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