Final answer:
A lack of competition can result in higher train fares. The government regulates train fares to protect consumers and ensure fair pricing.
Step-by-step explanation:
A lack of competition can negatively affect the prices that a train company charges for fares. When there is no competition, the train company has a monopoly and can set higher prices without fear of losing customers to competitors. This lack of competition gives the train company more control over pricing and can result in higher fares.
The government regulates the prices of train fares to protect consumers and ensure fair pricing. Regulating prices helps to prevent monopolies from charging excessive fares and taking advantage of their market power. It also ensures that train fares remain affordable for the general public.
For example, in a country with only one train company, the absence of competition may lead to inflated fares, limiting access to train travel for lower-income individuals and families.
Learn more about impact of competition on train fares