Saturday, September 22, 2018

ECONOMIC CONCEPTS LINKED TO INDIAN RAILWAY



MONOPOLY:  Monopoly means existence of single producer or seller for a product or service where, there are no close substitutes. This is same in the case of Indian Railway, it is run by Indian Government, non-other provide this service in India. So, Indian railway enjoy the monopoly.

ECONOMIES OF SCOPE: Indian Railway look forward into other sectors, they recently started Catering service to corporate that runs in a good level, they also run tourism services to passengers, parking lot operations.

MARKET SEGMENT FACED PRICE DISCRIMINATION: Indian Railway as fixed different rates according to age category. Such as, for kids under 3 years are free to travel, Senior Citizen gets special concession in their ticket rate, but the normal charge is followed by all others.

ECONOMICS OF SCALE: For Railway, the investment is made only ones for laying of tracks and purchasing of trains but ones it start running it starts making money where more the number of passengers using railway

PEOPLE FACE TRADE-OFF: People can choose other mode of transportation other than using railway for travelling or sending goods. But most of them prefer Railway because of the benefits they get from using railway, such as reduction of cost, trustworthy etc.

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