Highlight important features of the infrastructure sector.
Download our app for free and get started
Following are the important features of infrastructure:
- Public Goods: Most of the physical infrastructure services have some elements of public good in them i.e. it is not always possible to exclude those consumers who chose not to pay for them.
- Externalities: The social benefit of the infrastructure services is more than the cost involved in their generation. It makes it difficult to price them economically.
- Monopolies: Monopolies are more prevalent in infrastructure.
- Public Sector Domination: Public sector dominates in supply of infrastructure due to above mentioned features.
- Lumpy Investment: Infrastructure projects are such that any expenditure on a part of the project is not useful until the whole project is ready for operations.
- Indivisibilities: It means one can not divide and sub-divide such projects in small parts and activate them.
Download our appand get started for free
Experience the future of education. Simply download our apps or reach out to us for more information. Let's shape the future of learning together!No signup needed.*
Similar Questions
- 1View SolutionWhat are the three basic sources of generating power?
- 2View SolutionWhat does the study of global burden of diseases (GBD) indicate about state of public health in India?
- 3View SolutionWhat is meant by economic infrastructure? Explain its importance in economic development.
- 4View SolutionDiscuss the energy crisis in India.
- 5View SolutionHow do infrastructure facilities boost production?
- 6View SolutionWhat are the challenges faced by the energy sector of India?
- 7View SolutionSome infrastructural facilities have a direct impact on production of goods and services while others give indirect support by building the social sector of the economy. Using above information, differentiate between social and economic infrastructure.
- 8View SolutionHow does agricultural and industrial progress depend upon infrastructure?
- 9View SolutionJustify that energy crisis can be overcome with the use of renewable sources of energy.
- 10View SolutionDiscuss the main drawbacks of our health care system.