Wednesday 10 July 2013

I WANT TO WATCH ASTRO!!!



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~~~

-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

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6 comments:

  1. Unknown10 July 2013 at 21:04

    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

    ReplyDelete
  2. Unknown10 July 2013 at 21:10

    Clear information!!!is monopoly good to consumers?

    ReplyDelete
  3. Lee Sheng, Aun Jian, Ying Ze, Hareez10 July 2013 at 21:36

    Chai Yon Xing- YA!!! Astro should care about their customers feeling!!!

    ReplyDelete
  4. Lee Sheng, Aun Jian, Ying Ze, Hareez10 July 2013 at 21:38

    Woon 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....

    ReplyDelete
  5. 何颖11 July 2013 at 02:06

    Other than the disadvantage, is there any advantage for monopoly?

    ReplyDelete
  6. Lee Sheng, Aun Jian, Ying Ze, Hareez11 July 2013 at 07:50

    Of 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

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