Question

can Denel be regarded as a monopoly in south africa​

Answer 1

Yes, it can be regarded as a monopoly.

• Denel was founded as a private company, but due to the nature of its major industry, weaponry, it cannot be considered a typical consumer-oriented corporation.

• Armaments have the power to kill and destroy, among other things, which other consumer items and services do not have or are unmeant to accomplish.

• The enterprise is considered a monopoly. According to traditional view, privatizing a public monopoly does not eliminate monopoly's power or the prospect of misusing it at the expense of customers.

• In the absence of competition, the monopolist may be compelled to reduce production and hence raise prices.