In many cases throughout Canadian history, governments have sought to control the behaviour of oligopolistic firms through either ownership or regulation. Policymakers are now skeptical of such practices because
1) many innovations in products and production methods that have led to increases in living standards are attributable to firms in oligopolistic industries;
2) it became clear that oligopolistic industries can achieve both productive and allocative efficiency without government intervention;
3) the regulatory body often ends up protecting the firms from competition.

Question

Quizplus · Accepted Answer

Policymakers are skeptical because oligopolistic firms have contributed to innovations (1) and regulatory bodies can sometimes protect these firms from competition (3).

In Many Cases Throughout Canadian History, Governments Have Sought to Control