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Eskom makes normal profit in BB the long run

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Anonymous

4y ago

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What type of profit is earned by eskom?

what is the type of profit which is earned by Eskom in the ling run


What type of profit earned by eskom?

what is the type of profit which is earned by Eskom in the ling run


WHAT TYPE OF PROFIT WHICH IS EARNED BY ESKOM IN THE LONG RUN?

In the long run, Eskom, as a state-owned electricity supplier in South Africa, aims to achieve a normal profit, which covers its costs and provides a reasonable return on investment. However, due to various challenges such as operational inefficiencies, financial constraints, and regulatory pressures, it often struggles to sustain profitability. The company may also experience periods of economic profit when operational improvements or changes in pricing structures enhance its financial performance. Ultimately, the long-term goal is to maintain financial viability while ensuring reliable energy supply.


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Eskom, South Africa's state-owned electricity supplier, is often criticized for being an undesirable market structure due to its monopoly status, which limits competition and innovation in the energy sector. This lack of competition can lead to inefficiencies, higher prices, and poor service delivery. Additionally, Eskom's financial struggles and reliance on outdated infrastructure raise concerns about sustainability and reliability in energy supply. Critics argue that a more competitive market could drive improvements in efficiency and customer service, ultimately benefiting consumers.


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