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economics exam tomorrow...need help!

Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
edited March 27 in Work & Study
I've got my economics Unit 2 AS exam tomorrow and was wondering if anyone could help me. Its a really simple question but I just can't really think of much...
What are the disadvantages of public transport provision? I can think of enough advantages but I'm a bit stuck on the disadvantage side.
Thanks - x
Post edited by JustV on

Comments

  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Originally posted by Pink Soda:
    <STRONG>What are the disadvantages of public transport provision? </STRONG>


    - Initial start up costs, as in costs of production (wages, production of buses etc!)

    - with regards to railways, disadvantages are that there is only one track, whichhas to be shared by all of the companies, therefore increased competition cannot be created, without building another line = costs a lot!

    - will people use it? It doesn't matter how good it is, a car will always be preferable!

    - getting it to run on time!

    - Is it really 'public', most train and bus companies are privately owned so they have no incentive to increase efficiency.

    I can't think of anymore, but these should get you started!
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Thanks bumblebee thats the kind of thing I was looking for.
    Along those same lines..what are the arguments in favour and against the government subsidising public transport?

    Also, in my syllavus, it says 'Understand the relationship between external costs and diseconomies of scale. Understand the relationship between external benefits and external economies of scale.'
    - Does this mean like a large firm having more economies of scale and hence having lower average costs and lower prices to the consumer?..and visa versa. I couldn't really think of anything else - x
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Bumblebee, you might as well go and sit her exam for her aswell!! <IMG SRC="rolleyes.gif" border="0" ALT="icon">
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