INDIAN RAILWAYS

Indian Railways is the state-owned railway company of India. Indian Railways had, until very recently, a monopoly on the country’s rail transport. It is one of the largest and busiest rail networks in the world, transporting just over six billion passengers and almost 750 million tonnes of freight annually. IR is the world’s largest commercial or utility employer, with more than 1.6 million employees.

MONOPOLY

Indian Railway is Monopoly in nature. A monopoly is a market in which a single seller sells a product which has no substitute.

UTILITY

Indian Railway fulfills the travelers need. A consumer buys or demands a particular commodity and services he derives some benefit from it. He feels that his given want is satisfied by the availing the service. Utility is the basis of consumer demand. A consumer thinks about his demand for a commodity on the basis of utility derived from the commodity.

ECONOMICS OF SCOPE

Economics of scope occur when products share common inputs and diversification leads to cost savings. Apart from the travelling services they also provide food services as they have separate pantry section in trains.