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Krazil Krazil
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A year ago
Suppose there are only two firms (Firms A and B) in Canada that produce good X, and the two firms propose a merger to create a single firm (Firm AB). Is there any circumstance under which the authorities enforcing Canadian competition policy might approve of such a merger?

▸ According to the Competition Act, as long as the revenues of the merged firm are less than $100 million per year.

▸ If the market is defined as being within Canada's borders, and the merger allows Firm AB to exploit economies of scale.

▸ If international trade in good X is such that Firm AB faces a fully competitive environment, both within and outside of Canada's borders.

▸ According to the Competition Act, if the merged firm enhances the status of a Canadian cultural industry.
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Microeconomics

Microeconomics


Edition: 17th
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Botox14Botox14
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A year ago
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Krazil Author
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A year ago
Correct Slight Smile TY
deathDoUsPart
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Yesterday
You make an excellent tutor!
mkyoungs
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2 hours ago
Good timing, thanks!
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