Question

‘The Indian Railways said that there is no proposal yet to restore concessions offered to certain categories of people in ticket fares after the facility was stopped due to Coronavirus Pandemic.’ – Economic Times, August 06, 2021

1. The Indian Railways is an example of which form of market?
2. State the feature of market highlighted in the above extract.

Answer 1

1. Indian Railways is an example of a monopoly market. A monopoly is a market structure in which a single seller supplies a product or service with no close substitutes. Being government-owned, Indian Railways operates as the only railway transport provider in the country. It controls the entire railway sector and therefore has full market power to fix ticket prices independently.
2. The market feature highlighted in the extract is “Price Maker.” In a monopoly market, the seller has the power to fix prices since there is no direct competition. Indian Railways can independently decide ticket fares, concessions, and discounts without being influenced by competitors. As there is no alternative railway service in the country, passengers have to accept the prices set by the railways.