Question: We characterized the interstate rail lines owned by major U.S. railroads as strategic assets that generated increased profits from 2005 to 2007. In what conditions

We characterized the interstate rail lines owned by major U.S. railroads as “strategic assets” that generated increased profits from 2005 to 2007. In what conditions would you expect these assets to generate economic rents? Keep in mind that railroads compete with trucking companies as well as other railroads. Trucking companies have some advantages, including flexibility.

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