Why do industries like electricity or cable TV have just one or two major firms while other industries like restaurants or clothes have hundreds or thousands? What might be a general difference that leads to some industries having many firms while others are dominated by just one or two?”
Answers
Answer:
ANSWER
Explanation:
Because in electrical Industries investment is very high as it goes in billions . so , many companies invest in a single manufacturing units . and about small Industries like cloth industry the user consumption is higher because are cheaper and are even in the reach of lower middle class families. And also there manufacturing unit cost less than the electrical industry.
Industries like electricity are necessity while restaurant or clothing industries are kind-of-luxury.
decentralisation of industries like electricity will create price discrimination and some companies will try to earn more by charging high for same amount of power supply as a result poor people will not be able to get electricity-
which is most basic need of human in current times.
whereas the restaurant and clothing industries cannot be called totally basic as people can wear a pair of clothes which costs 300Rs. as well as 30000 Rs.
same applies to restaurant a person can go to a normal restaurant or a 5-star one or even prefer not to go and eat at home.
so having more firms/substitutes of industries which supplies basic necessities will impact lives of people massively
whereas having options in luxury sectors like restaurant will not have any major effect on people at large.