Is Transperth which is public transport in WA monopoly? If so, does it make a profit?...

Is Transperth which is public transport in WA monopoly? If so, does it make a profit? Explain by using diagrams

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Expert Solution

In Monopoly business one of the important Advantage/benefit is they can set price of product and services as per their decision, In Monopoly business there is no competitor or substitute because of that Monopoly business can take advantage of these things and set their price as per market condition or company ,

Definitely Western Australia transport system that is Transperth, is also Monopoly of Western Australia and there is no substitute available to compared with it, because of that definitely Transperth is make profit which is Economic positive profit,

In competitive market there is competitors because of that its effect on product price market and sales because of that company needs have to set price as per competitors price,

For Example competitive Market-

As above graph there is two Famous companies of Show making, Here Sale of Nike is more compare to Adidas , of Why cause Rate of Nike shoe is less compare to Adidas and quality sale,

Example of Transperth Monopoly

(Above Rate for 10Km Journey of Transperth WA)

As Above Diagram,

But If consider Transperth WA Monopoly business, if they arise Price each year of Train tickets such as in 2017 Single Train ticket was $10 for 10km journey that time consumer buy tickets around 20%, after that in 2018 Transperth increase price of tickets for same journey around $12 therefore consumer % increased to 30%, after that in 2019 it increase ticket price $14 therefore consumer buy tickets the % increased by 40%, and in 2020 price is $15 for same journey there fore % of tickets buyers increases upto 50%, so this is Transperth monopoly business advantages, cause of un-availability of Competitor, Transperth earn more revenue even they increase Price of Train Tickets

then also Passenger going to buy tickets cause in WA there is no Substitute for Transperth, cause of that Transperth always make more profit compare to Competitive market or business,

Rahul Sunny answered 1 year ago

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