Moreover, monopolies in Canada are fundamental for business monopoly owners because they receive all consumers, there is no competition and quality of goods and services are acceptable if poor. To begin, monopolies in Canada are imperative because they supply to all consumers who are in demand of a specific good or service. In particular, Bell Canada is a natural monopoly for telecommunications around the country alongside to Rogers and Telus (WINSECK, "Telecommunications"). This allows them receive large amounts of customers for people who are in need of wifi, cell phone plans, cable, etc, without advertising and providing incentives. This is crucial for Bell because they are a well-known telecommunications company that receives tremendous
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Since Google is a successful monopoly, they do not need to spend time to advertise and innovate, instead they focus on planning for the long term and find methods to look after employees alongside to earning money (Baer, "Peter Thiel: Google Has Insane”). Thirdly, monopolies allow businesses to focus on delivering standard goods and services by completely disregarding its quality. To be precise, consumers pay higher prices for lower quality products compared to businesses with perfect competition. Therefore, monopoly owners are significantly wealthier than businesses with perfect competition because monopoly owners take advantage of high prices and low quantity products, based on graph 2.0 in the appendix. To conclude, monopolies in Canada are an asset to Canadian businesses because monopolies receive all consumers in need of their goods and services, monopoly owners gain supernormal profits and allows them to generate larger producer …show more content…
To begin, monopoly power is a detriment to businesses because monopolies drive off firm entries. For example, five characteristics that determines a pure monopolist are: when the firm is a single seller, no close substitutes, price makers, blocked entry and advertising (Georgiadis, "Price and Output Determination”). This demonstrates, once there is a monopoly in place for a specific market, there is no opportunity for other businesses to intervene. Furthermore, monopolies in Canada do not create incentives for innovation. To illustrate, “A monopoly will also have limited motivation to innovate, as there is little value in differentiation in a thoroughly controlled market (for the only incumbent). As a result, there are no incentives to improve, which hinders the ability of the firm to fulfill tastes and preferences of consumers ("Social Impacts of Monopoly." Boundless). This demonstrates, perfect monopolies are necessary for encouraging continuous development of businesses. Likewise, monopolies need to focus on their delivery to suffice immense consumer demands. For instance, the Toronto Transit Commission's (TTC) is a transportation service that has four convenient subway lines, eleven routes for streetcars and over one hundred fifty bus routes ("General Information." TTC). They are relied on daily and if
Since Google is a successful monopoly, they do not need to spend time to advertise and innovate, instead they focus on planning for the long term and find methods to look after employees alongside to earning money (Baer, "Peter Thiel: Google Has Insane”). Thirdly, monopolies allow businesses to focus on delivering standard goods and services by completely disregarding its quality. To be precise, consumers pay higher prices for lower quality products compared to businesses with perfect competition. Therefore, monopoly owners are significantly wealthier than businesses with perfect competition because monopoly owners take advantage of high prices and low quantity products, based on graph 2.0 in the appendix. To conclude, monopolies in Canada are an asset to Canadian businesses because monopolies receive all consumers in need of their goods and services, monopoly owners gain supernormal profits and allows them to generate larger producer …show more content…
To begin, monopoly power is a detriment to businesses because monopolies drive off firm entries. For example, five characteristics that determines a pure monopolist are: when the firm is a single seller, no close substitutes, price makers, blocked entry and advertising (Georgiadis, "Price and Output Determination”). This demonstrates, once there is a monopoly in place for a specific market, there is no opportunity for other businesses to intervene. Furthermore, monopolies in Canada do not create incentives for innovation. To illustrate, “A monopoly will also have limited motivation to innovate, as there is little value in differentiation in a thoroughly controlled market (for the only incumbent). As a result, there are no incentives to improve, which hinders the ability of the firm to fulfill tastes and preferences of consumers ("Social Impacts of Monopoly." Boundless). This demonstrates, perfect monopolies are necessary for encouraging continuous development of businesses. Likewise, monopolies need to focus on their delivery to suffice immense consumer demands. For instance, the Toronto Transit Commission's (TTC) is a transportation service that has four convenient subway lines, eleven routes for streetcars and over one hundred fifty bus routes ("General Information." TTC). They are relied on daily and if