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Economics · May / June 2021 · Paper 12 · Question 15

2281Types of markets

A private sector firm is the only supplier of rail services between two cities. What will stop the firm charging very high ticket prices?

  1. Abarriers to entry into rail services
  2. Bcompetition from public road transport
  3. Cgovernment policy encouraging monopoly power
  4. Dhigh costs of maintaining rail tracks

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Correct answer: B. competition from public road transport

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