Question

Question 01: Indian railway is an example of a natural monopoly. Briefly explain and justify (400 words)

Question 02: Dubai Metro was introduced on 9/9/2009. Do you think “Dubai Metro” also has the characteristics of natural monopoly? Explain and justify (500 words)

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Note: Plagiarism is strictly prohibited

Answer 1

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Answer to Q1: (405 words without any PLAGIARISM)

Monopolies are characterized by a absence of economic competition for the good or services they offer and a absence of feasible replacement products. Economic monopoly is described as a continued business condition where there is a single supplier with a commodity or service. Monopoly is seen when the item is not closely substituted, and when the item is only manufactured and sold by a single manufacturer. Single vendor–a single company's complete business command. Production, product distribution and sales are all governed by the same company. No contest. No contest. A single item-one private vendor offers a item that has no replacement or at least no near replacement on the industry. No distinction between the company and the sector is that the monopoly is the same thing. Independent decision making implies that a single company can regulate the whole industry without any concern over the policy of the competitor of the companies, and can decide on the cost and production of the products. The limited input of any other business into the same service industry or commodity sector is to be restricted in the event of monopoly.

Natural Monopoly-a natural monopoly is a kind of monopoly which occurs because of the elevated start-up expenses or a large-scale economy of a particular sector. The only supplier or utility in an enterprise or geographic place could be an enterprise with a natural monopoly. In sectors which need distinctive raw materials, technology or comparable variables to function, natural monopolies may be created.

Indian Railways - Indian Railways is India's government-owned railway firm. Up until lately, Indian Railways had a monopoly on rail transport in the country. This train network is one of the world's biggest and fastest and carries just over six billion travelers and nearly seven fifty million tons of goods worldwide. With more than Sixteen lakh staff, IR is the world's biggest business or utility company. 1853 was the year in which Railways were introduced in India. There were 42 train stations by 1947, the year of India's independence. The facilities became one of the biggest networks in the globe and nationalized in 1951 as a single department. There is no rival in a monopoly, there is not a replacement and business participation is limited. In the event of Indian Railways, public inclusion or participation in the ownership of the Railways is limited. Thus Indian Railways is one of the best examples of Natural Monopoly or Pure monopoly.

Most of the years and employee figures were taken from Wiki and Indian Railways Official Website.