Answer to Question #72178 in Microeconomics for Mo

Question

What does the evidence from the article suggest about the market structure operating in the rail industry? Justify your answer. (20 marks) I was wondering if it is monopoly?

https://www.theguardian.com/business/2017/aug/15/uk-commuters-brace-rail-fares-hike-uk-inflation

https://www.theguardian.com/money/datablog/2017/jan/06/tracking-the-cost-uk-and-european-commuter-rail-fares-compared-in-data

Answer 1

The evidence from the article suggests that the market structure operating in the rail industry is a monopoly, because it is the only supplier of railway connections and can change the price, so it is price-maker.