Concepts on Indian railways:
Monopoly:
No other firm operates in this field of providing rail transport to people, so
Indian Railways enjoys the monopoly.
Economies of scope:
With same level of input trying to reduce cost with new ways of income
generating. We can use railways for many purposes like traveling, shifting
goods etc.,
Price Discrimination:
It charges different prices from different people depending on the route,
train type, age, gender etc. it charges different prices from male and female. It
takes less from senior citizens. There is a discrimination in the class such as
general, sleeper and a/c.
People Respond to Incentive:
People respond incentive is when sometimes we book tickets in sleeper and
it is in waiting list and railway converts or upgrades it to a/c.
Law
of supply: If the number of people or fare is increasing
railways will increase its supply by increasing rail compartments and special trains are being allotted to those areas.
No comments:
Post a Comment