Can you provide me with a case study on Railways as government monopoly in detail . Please I want it urgently . Please
Dear Student,
Monopoly is a market in which there is one seller and the product has no close substitute. In India, Railways has a monopoly by government and no other business or firm can open their new railways due to patent rights . Indian government has full monopoly over 3 sectors i.e. Railways, Defence and Nuclear energy. No other individual , firm or institute can start these business of their own due to patent rights.
Railways were first introduced to India in 1853. Indian Railways is the state owned company of India. It is one of the biggest rail network in the world. India is a developing country and a large portion of population is poor . For the sake of normal public, government has railways under itself only. In India railways is the biggest and the most used means of transportation by lakhs of local people daily. Government suffers loss at very ticket bought by every passenger. Because expenditure done by railways is far more than that it is charging. If government losses its ownership, no private institution or firm will not agree to bear such losses and will charge more from passengers and that will have effect on local public travelling through railways daily. Railways is a monopoly also as there is no close substitute to it, there are air planes and other sources but they are very expensive and cannot be afforded by every person in the country. Indian railways is also providing employment to a lot of local public and is a boom for local public of India . So, we can say that railways is government monopoly because there is single seller one we can say single provider of this service, patent rights, large number of buyers or users , no entry and exit of new firms.
Hope this information will clear your doubts on this topic.
If you have any more doubts just ask on the forum and our experts will try to help you out as soon as possible.
Regards
Monopoly is a market in which there is one seller and the product has no close substitute. In India, Railways has a monopoly by government and no other business or firm can open their new railways due to patent rights . Indian government has full monopoly over 3 sectors i.e. Railways, Defence and Nuclear energy. No other individual , firm or institute can start these business of their own due to patent rights.
Railways were first introduced to India in 1853. Indian Railways is the state owned company of India. It is one of the biggest rail network in the world. India is a developing country and a large portion of population is poor . For the sake of normal public, government has railways under itself only. In India railways is the biggest and the most used means of transportation by lakhs of local people daily. Government suffers loss at very ticket bought by every passenger. Because expenditure done by railways is far more than that it is charging. If government losses its ownership, no private institution or firm will not agree to bear such losses and will charge more from passengers and that will have effect on local public travelling through railways daily. Railways is a monopoly also as there is no close substitute to it, there are air planes and other sources but they are very expensive and cannot be afforded by every person in the country. Indian railways is also providing employment to a lot of local public and is a boom for local public of India . So, we can say that railways is government monopoly because there is single seller one we can say single provider of this service, patent rights, large number of buyers or users , no entry and exit of new firms.
Hope this information will clear your doubts on this topic.
If you have any more doubts just ask on the forum and our experts will try to help you out as soon as possible.
Regards