Why TNB can be a monopoly market in Malaysia? It is because TNB has fulfilled all the characteristics of the monopoly market structure. So, what are the characteristics of monopoly market? The first one is one seller and large number of buyer, the second one is product has no close substitute, next is price maker and the last one is barriers to entry. Therefore, why and how TNB can fulfil all the characteristic of them? First of all, I would like to explain about the barrier to entry this industry. It was a barrier to entry the electricity industry is because of the legal barrier to enter of patent or licenses that own by TNB and set by the Malaysia government itself to avoid any company enter to the industry. For example, we now predict that there are two…show more content… Not only this, when there are two or more company in this industry, it will cause the number of power plants increase and directly lead to the increase of transmission tower and this will be a problem for the company to direct the cables to each household who choose different suppliers. In order to solve this problem, the government only give the license to TNB to limit the entry of other company into the industry. The second barrier is because TNB has ownership on the scarce raw materials, TNB have owned a very cheap input to provide electricity. TNB have access to coal, which is the cheapest raw material used to generate electricity here in Malaysia. So, if have some new companies tend to enter the industry, for sure they will be forced to access to