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A utility monopoly is different than a profit-seeking one. If Amtrak became exclusively profit-seeking, it might raise prices dramatically cut unprofitable rout
by Ozzie_osman 7y ago
A utility monopoly is different than a profit-seeking one. If Amtrak became exclusively profit-seeking, it might raise prices dramatically cut unprofitable routes (say, to poorer towns), etc. Those things might increase profits but undermine the economic benefit that was being provided.
- maxjmartin 7y agoI expect that if they did raise prices dramatically, they would lose buisness to roads. This suggests that they are not, in fact, a monopoly.