Railroads have received significant attention from regulators because
A)railroads enjoy significant economies of scale.
B)conditions in the railroad industry are conducive to destructive competition.
C)regulators would like to ensure universal service to all potential railroad customers.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Railroads have received significant attention from regulators due to multiple reasons. Firstly, railroads enjoy significant economies of scale which can result in the domination of the industry by a few large players. Secondly, conditions in the railroad industry are conducive to destructive competition, which can lead to unstable and unpredictable pricing behavior. Finally, regulators would like to ensure universal service to all potential railroad customers, especially in remote areas or communities that might be underserved.

Railroads Have Received Significant Attention from Regulators Because