Tuesday, April 10, 2007

Turkish Markets

This article is about electricity systems in Turkey. It talks about
their marketing systems and about who controls the market. A main part
of this article is about Marginal Cost equaling Marginal Revenue
(price)."Market boundaries need to be established based on the
potential for substitution. To the extent there is demand or
supply-side substitution (or the potential for such substitution)
between certain goods and services, these related goods and services
should be considered as part of a single market." This is a description of how they say market power is tested. They want to know whether or not it is perfectly competitive. This is significant because they need to know what kind of a market they are in so they can know if they should enter or exit from it.

No comments: