Case Study On Monopoly

Independent Study on Monopolies in Canada The idea of a single entity dominating a product or service in an industry is a controversial topic for Canadians. A monopoly is, “a single company or group who owns all or nearly all of the market for a given type of product or service. By definition, a monopoly is characterized by an absence of competition, which often results in high prices and inferior products” ("Monopoly Definition” Investopedia). The word “monopoly” derives from the Latin term, “mono” meaning single and “poly,” for seller (Benjamin, “Different Types of Monopoly Practices”). To many, monopolies generate “efficiency, are customer-orientated, innovative, high quality and low cost” (MORGAN, "Canada 's Monopoly Health-care System”). One may argue against this statement. There

The most common are a natural monopoly, public monopoly, perfect monopoly and legal monopoly (Benjamin, “Different Types of Monopoly Practices”). Monopolies in Canada are necessary and beneficial for governments, households and business sectors.

Firstly, the government’s ownership of a selection of products and services in Canada is favourable since it allows for efficiency, a larger surplus and ensures safety. To begin, banks in Canada are a monopolistic competitive market that guarantees efficiency. For example, a recent study on the productivity of banks across the world suggests Canadian governments are benefiting from public monopolies (Allen, "Efficiency and Competition in Canadian Banking"). The United States, along with other countries have a cost-inefficiency measure of ten percent (Allen, "Efficiency and Competition in Canadian Banking"). In contrast, Canada has a much lower cost-inefficiency measure, this signifies bank monopolies in Canada are highly productive (Allen, "Efficiency and Competition in Canadian Banking"). Additionally, these results highlight the roaring successes of the top six banks in