A major aim of Canadian competition policy is to
A) achieve a perfectly competitive market structure in all markets in the Canadian economy.
B) protect Canadian companies from unfair foreign competition.
C) monitor the pricing practices of crown corporations.
D) eliminate oligopolies and the allocative inefficiency that they entail.
E) prevent further concentration of industries where such concentration would lessen competition.

Question

Quizplus · Accepted Answer

The option states that the aim of Canadian competition policy is to prevent further concentration of industries where such concentration would lessen competition. This indicates that the policy's goal is to promote competition and prevent anti-competitive behavior rather than achieving a perfectly competitive market structure in all markets or protecting Canadian companies from foreign competition. It also suggests that the policy recognizes that some industries or markets may have oligopolies, but the goal is to address any resulting allocative inefficiency through promoting competition rather than eliminating oligopolies entirely. The option also implies that the policy has a role in monitoring industry and preventing further concentration where it would be detrimental to competition.

A Major Aim of Canadian Competition Policy Is to