On: Amtrak Could Turn a Profit for the First Time

[bhk]

Because it's a natural monopoly, they cannot be expected to break even, and therefore deserve taxpayer subsidies?

[Ozzie_osman → bhk]

A utility monopoly is different than a profit-seeking one. If Amtrak became exclusively profit-seeking, it might raise prices dramatically cut unprofitable routes (say, to poorer towns), etc. Those things might increase profits but undermine the economic benefit that was being provided.

[maxjmartin → Ozzie_osman]

I expect that if they did raise prices dramatically, they would lose buisness to roads. This suggests that they are not, in fact, a monopoly.