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Monopoly and Competition in MTR Economy

Yu Guoping (Zhejiang College of Finance and Economics,Hangzhou 310018)  
Based on the analysis of different types of MTR economy,the author deems that only subway passenger economy possesses the characteristics of natural monopoly. In the evaluation of operation monopoly of MTR operation,the average variable costs of MTR should be mainly examined. Subsidiary economy of MTR should introduce the mechanism of competition and should be isolated from the subway operating system. The economic effects of the introduction of competition mechanism into MTR subsidiary economy are also discussed.
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