Q3The Competition Bureau in Canada wants to increase competition and reduce monopoly power. Thus it it worries about industry concentration Assume that Canada's production of plastic sheds, which we further assume is an oligopoly. Collusive control over the price of plastic sheds in Canada may permit oligopolists in the industry to:Multiple Choice advertise and take advantage of the competitors in the Canadian plastic shed industry. reduce uncertainty, increase profits, and possibly limit entry of new firms in the Canadian plastic shed industry. increase product demand, increase product supply, and lower cost in the Canadian plastic shed industry. achieve economies of scale, reduce costs, and prevent price cheating in the Canadian plastic shed industry. use new technology, achieve economies of scale, and get government subsidies for the Canadian plastic shed industry.

Collusion of oligopolist firms is made for:- Controlling price Increasing profits Inclined towards…

Answered: The Competition Bureau in Canada wants…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The Competition Bureau in Canada wants to increase competition and reduce monopoly power. Thus it it worries about industry concentration Assume that Canada's production of plastic sheds, which we further assume is an oligopoly. Collusive control over the price of plastic sheds in Canada may permit oligopolists in the industry to:

Multiple Choice

advertise and take advantage of the competitors in the Canadian plastic shed industry.
reduce uncertainty, increase profits, and possibly limit entry of new firms in the Canadian plastic shed industry.
increase product demand, increase product supply, and lower cost in the Canadian plastic shed industry.
achieve economies of scale, reduce costs, and prevent price cheating in the Canadian plastic shed industry.
use new technology, achieve economies of scale, and get government subsidies for the Canadian plastic shed industry.

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