Explain how markets and governments can deal with a lack of rail competition (for example, in...

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Explain how markets and governments can deal with a lack of rail competition (for example, in...

Explain how markets and governments can deal with a lack of rail competition (for example, in Canada where we have two railways serving most urban centres)?

business economics

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Answer 1

Answer #1

In order to encourage more competition in the market, the government should provide subsidies at entry level for all firms trying to enter the rail industry.

Also, tax benefits can be provided along with various wage regulations and other benefits to encourage firms to enter the market.

Foreign capital investment must also be encouraged to get the firms started with capital requirements.

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Answer 2

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Explain how markets and governments can deal with a lack of rail competition (for example, in...

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