ipl-logo

Monopoly

1502 Words7 Pages

Monopoly and Price discrimination of Indian Railways
---------------------------------------------------------------------------

Prepared By:
Name :Mohamed Ali .K
ID :2016hb74036
Email :2016hb74036@wilp.bits-pilani.ac.in

Assignment: Managerial Economics

Do you think Indian Railway is an example for monopoly market? What are the types of price discrimination that Indian railway practice?
Introduction
In economics, monopoly in its pursuit form is the case of a single seller. The market demand for its product is the only constraint on the firm’s pricing policies. Barriers to entry prevent new firms from coming in to industry. It exists when delivery of a particular product or service is completely controlled by an individual …show more content…

First degree price discrimination: In first degree price discrimination, price changes by customer 's willingness or ability to pay. It is perfect price discrimination and hence there is no consumer surplus. Auction is an example for this type of price discrimination. Indian railways do not employ any first degree price discrimination.

2. Second degree price discrimination: In second degree price discrimination, price changes in accordance with the quantity sold. Usually monopolist sets the block prices, under which prices are highest for first block of quantity bought and it is reduced for each successive purchase by the same customer. Indian railways employ second degree price discrimination as follows

a. Indian railways charge for every kilometre which is brought down as one travels longer and longer. Thus a train ticket for the Rajdhani’s Class-1A between Mangalore to Delhi (Rs 6980) is lesser than the cost of two Class-1A tickets one from Mangalore to Mumbai (Rs 4400) and Mumbai to Delhi (Rs 4755). The price differences are much more than what can be explained by cost, hence this is a case of second degree price discrimination. Mangalore to Delhi Mangalore to Mumbai Mumbai to

Show More
Related

The Sherman Anti-Trust Law: The Maricopa County Medical Society Case

524 Words | 3 Pages

Fixing prices is expressly forbidden as it prevents effective competition which

Read More

What Is The Search For Marvin Gardens By John Mcphee Game Of Monopoly

696 Words | 3 Pages

In 1972 an article was written during a major change in American history, Poverty became an issue due to the hands of big businesses. This article describes two characters playing in an intense game of Monopoly. As they are playing, John Mcphee switches settings in order to explains the dramatic highs and lows of Atlantic City. Before Atlantic City’s downfall, billionaire entrepreneurs built massive businesses and Atlantic city became a playground for adults. During this time, the ‘American Dream’ was perceived as being rich and wealthy to no end.

Read More

How Did Monopolies Affect The 1900's

597 Words | 3 Pages

Monopoly is not just a board game people play for fun, monopolies became powerful and affected the late 1800’s and early 1900’s. Monopolies are the exclusive possession or control of the supply or trade in a commodity or service. Basically, monopolies are firms that have a lot of market power. They greatly controlled industries and played a role in the government, such as helping president President Benjamin Harrison. Monopolies dominated their own industries and were huge for the industrial period in the United States.

Read More

Examples Of The Nfl Monopolies

714 Words | 3 Pages

What is a monopoly: a monopoly is the exclusive control of a commodity or service in a particular market. For example famous monopolies include Andrew Carnegie's steel company which in the 1900s was responsible for almost all the steel production in the world and John D Rockefeller's Standard Oil company which responsible for almost all the United States production of oil. In their time these two companies were a few of the biggest ever.

Read More

Bingo Board Game

173 Words | 1 Pages

Students will read and identify sight words through bingo. The bingo board game will be replaced with sight words. The instructor will create a bingo board using an online generator or template online. The bingo card will have nine boxes with nine words, using the 11 sights words and each card will be different. Have the students sit on the carpet and review the sight words that will appear in the bingo game.

Read More

Andrew Carnegie A Monopoly Essay

1044 Words | 5 Pages

As it could be seen, the creation of the railroad system and discovery of many revolutionary inventions gave America the opportunity to expand its industry, grow wealthier, and become the most industrialized country in the world. Not only did this result in the spread of corruption and government regulation over the railroad industry, but it led to the growth of big businesses in other industries, the concept of monopoly, and the theory of social Darwinism was formed, in which all three ultimately redefined what it meant to be a successful business leader. One of the first big businesses to arise would have to be the Carnegie Steel Company, which was founded by Andrew Carnegie in 1899. Carnegie was born in Scotland, but moved to America when

Read More

Monpoly: The Board Game Of Monopoly

963 Words | 4 Pages

The board game of Monopoly is an American classic. Players learn to love and hate each other through this cutthroat and greedy game. Lines are crossed and personal boundaries are thrown out the door, but with a little bit of luck and strategy, one player will reign over them all with all the imaginary cash that they could imagine. What most Monopoly players do not know, however, is that the game was initially the product of a passion for social and economic justice. During the 1800s, the father of Elizabeth Magie introduced her to the ideas and beliefs of Henry George.

Read More

King Of The Bingo Game

397 Words | 2 Pages

In the short story King of the Bingo Game by Ralph Ellison, the narrator is at a movie theater and waiting to play the bingo game that follows right after the movie ends. He is looking for a way to get money for his wife Laura for she is about to die and they have no money for a doctor; he cannot get a job since he does not have a birth certificate. He has not eaten and has not slept and just wants to get the bingo game over with. In the South, it is normal for strangers to share their food, but since he moved North Carolina, people would think he is crazy. In order to win the money, the person must get bingo on the game, spin the wheel, and get a double zero, luckily, that is exactly what happens to the narrator up until the moment of the

Read More

Las Vegas Gambling

888 Words | 4 Pages

The 5 ultimate Las Vegas Classics Las Vegas is one the most famous cities in the United States. Mainly, people visit Sin City to try their luck in one of the city’s glitzy casinos or to get married. However, not many know that Las Vegas has a dark past that is inextricably linked to the mafia and organised crime. In fact, it was the mafia that first came up with the idea to build glamourous hotels with luxurious casinos as an additional source of income.

Read More

Heist: Zero-Sum Board Game

735 Words | 3 Pages

Heist is the name of the zero-sum board game that my group created for class. The primary goal of the game is to sneak around a manor stealing treasure from your fellow players. During the development of the game I created the initial idea for the game along with the design of the board, Jason created the cards and the mechanics behind each card, Samantha did most of the art assets for the game, Kyle printed out the physical cards, and Xander rote the rules of the game. The mechanics of the game were created by the entire group with each member contributing different ideas into the game. Even though everything didn't go smoothly, I still feel that our group did a fantastic job on the game as a whole.

Read More

Entrant Theory Of Dumping

3032 Words | 13 Pages

Thus it will simply set its normal monopoly price and the high-cost incumbent will imitate it in order to deter entry. The entrant does not learn anything from the observation of the first period prices, and decides on whether to enter or not on the basis of its ex ante probability of facing a weak incumbent. It is necessary that this probability is low enough fot the pooling equilibrium to exist since the entrant would stay out if it expects a high probability to face a strong incumbent and

Read More

Price Discrimination In Hotel Industry

777 Words | 4 Pages

In theory, the third degree price discrimination occurs when different customers pay different prices for the same goods, but each unit sold to a given group costs the same. This actually occurs in three different ways. First of all, most hotels offer discounts for children or seniors. This is done because the demand of these customer groups is more elastic. An explanation for this is simple: seniors usually have less income than adults, therefore a stay in the hotel takes up a larger share of seniors’ budget, meaning that they might not choose to purchase the good for a high price, which is affordable for adults with higher incomes.

Read More

Kfc Pricing Strategy

748 Words | 3 Pages

According to Wisnudewobroto (2011), KFC placed their products for high price but not overly high. However, to compete with other competitors, KFC trickle down their price for only the selected items during mealtime to focus on both middle and lower class people to penetrate both sides of the market. If the product price are too low, it might lead to customer perception that the food have a poor quality, while charging for the product too high price might cause customer to switch their preferences to other competitors. KFC also will take into consideration on the probable reaction from other competitors in the pricing

Read More

Oligopoly Case Study

1870 Words | 8 Pages

This is also where price mechanism takes place because any changes in demand and supply, will affect the price, and eventually balancing the demand to be equal to supply. This is the reason why consumers and producers have no control over the price, and in this situation, everyone is considered as price takers. This causes a horizontal line in the demand curve for the firm’s product(s), as can be seen in Figure 1 (b). Figure 1 There are barely any barriers to enter this market, making it easy to enter and exit according to the firm’s capabilities.

Read More

Insurance: The Importance Of Insurance

1977 Words | 8 Pages

It was the only sole provider. So, the industry was transformed from a competitive one to a monopoly. This was to increase insurance market penetration through nationalisation and to protect the interests of the policy holders from failures which were the result of mismanagement. The Indian insurance industry has undergone transformational changes since 2000 when the industry was liberalised.

Read More

More about Monopoly

Related Topics

Open Document