Economics 0455 · IGCSE · Market structure

Market structure — practice question

A company in the private sector is the sole provider of rail services linking two cities. What would prevent the company from setting very high ticket prices?

  • Abarriers to entry into rail services
  • Bcompetition from public road transport
  • Cgovernment policy encouraging monopoly power
  • Dhigh costs of maintaining rail tracks

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