MONOPOLY...

There is a brand in Malaysia we are very familiar with. We need it badly for our daily life which is Tenaga Nasional Berhad (TNB). It is also can know as Monopoly. TNB is the only firm in Malaysia that produces product or services that have no close substitutes. The service provided by TNB is electricity. Therefore, Tenaga Nasional Berhad has the ability to control over the price in the market without losing all demand for its product, because price of TNB is inelastic. 

Why is no firm allowed entry to this industry to produce electricity?? The reason is because of different type barriers to entry. For example, a type of barriers of entry is patents. Patents is the license that is given by the government to the TNB for exclusive rights to a process, design or new invention for a designated period of time. This prevents other firms from entering the market to produce the same product. 

TNB and other monopoly firms are pretty safe :3

An extra example for barrier to entry is TNB has ownership of raw materials. For example, TNB owned the raw materials of coal in certain places in Malaysian. This has help TNB easily to produce more electric supply.

In June 2011 TNB has increased the price by 7.12%. But what can a Malaysian do? Complain about the increase in price? There is no way!! We have no choice; we still have to pay for the electricity because it’s a need for our daily life be it at home or anywhere we go. Beside that, we now live in the advancement and technology development of the society, electricity is very important for us. For example, Hypermarket cannot operate as usual and everything in our house it all requires electricity. 

Omg bloody tears, do you see how important electricity is?

Lady Gaga is crying because her house has no electricity T__T

References

http://www.tnb.com.my/announcement/2011/05/increase-in-electricity-tariff.html

http://www.tnb.com.my/tnbf/intro.php