Chapter 12 & 13 B

Question 0

List the anti competitive practices of the bureau of Canada. (4)
explain the types of mergers.

Answer 0

1. mergers (can stop them from happening)
   - horizontal (3 firms in the whole industry, combining Into 1 is bad)
   - vertical
   - conglomerate
2. other civil matters
3. misleading advertisement and deceptive marketing
4. other criminal matters

Question 1

How does the tribunal system work and

What are it’s advantages (5)?

Answer 1

the tribunal system hears cases (civil matters) and uses a judge who is an expert on the topic to decide what happens.
tribunal: faster system, 
experts are involved, 
flexible, 
effective, 
lower transaction cost

Question 2

Why might private markets better than public enterprises?

why is public still necessary?

Answer 2

private: respond quickly, efficient, more innovation, profit driven. however, they don’t control externalities, price system can be distorted, and some regulations are necessary (like with the bank crisis)

Question 3

The gov is allowed to stop abuse of dominant positions. what are some of these abuses? (6)

Answer 3

• squeezing margins
• acquisitions
• fighting brands
• buying products to support prices
• product specs
• dumping.

Question 4

What is resale price maintenance?

Answer 4

supplier tries to ensure price floor on their product.

can suggest, not demand.