Question

Wheat of Punjab : Natural Monopoly :: Indian Railways :________________​

Answer 1

Answer:

Wheat of Punjab : Natural Monopoly :: Indian Railways : Monopoly

Explanation:

In a monopoly competition, there is only one seller and huge number of buyers due to which there remains no competition for the seller and no substitutes for the buyers. Indian railways in an example of monopoly as there is so close substitute for Indian railways which provide transportation at such nominal rates.

Answer 2

The wheat of Punjab is a natural monopoly and Indian Railways is also a Natural monopoly.

Given,

Wheat of Punjab : Natural Monopoly :: Indian Railways :________________​

To Find,

The Relation between the statements.

Solution,

Both wheat of Punjab and Indian railways are interconnected to each other. they both are the type of natural monopoly.

So, let's understand the concept of natural monopoly.

When one company is the most efficient number in an industry, it is referred to as a natural monopoly.

There cannot be more than one firm producing a good in a natural monopoly due to very high fixed costs.

Indian railway is the largest natural monopoly in India because no other than Indian Railway provides the cheapest mode of transport.

By building high cost railway tracks , bridges and stations. It only costs minimal charges to the public.

That's why Indian Railway is the biggest natural monopoly in India.

The wheat of Punjab is a natural monopoly and Indian Railways is also a Natural monopoly.

#SPJ2