O-LevelEconomicsThe allocation of resources2281/12 · May/June 2021 · Q151 Mark
A private sector firm is the only supplier of rail services between two cities. What will stop the firm charging 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
✓ Correct answer
B: competition from public road transport
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill The allocation of resources and see which topics are most likely to come up next.
Sign up free →