Is the railroad system a monopoly?
Is the railroad system a monopoly? The railroad companies held a natural monopoly in the areas that only they serviced. Monopolies are generally viewed as harmful because they obstruct the free competition that determines the price and quality of products and services offered to the public.
Is the railway system a monopoly?
Railroads are considered a natural monopoly. Because of the extremely high start-up costs, it is not profitable to start a railway if there is already a railway line serving the same route.