Slide 12

Question 1

what is competition policy

Answer 1

it is the laws and government policies designed to prevent monopolization and promote competition

Question 2

what does the competition bureau rely on to detect criminal violation

Answer 2

immunity and leniency programs

Question 3

what are the three categories that the competition policy is most concerned with

Answer 3

mergers
abuse of power
collusive agreements

Question 4

what are the tree types of mergers and describe them

Answer 4

horizontal (2 firms that produce identical goods)
vertical (2 firms that produce complementary goods)
Conglomerate (anything that doesn’t fit in the other categories)

Question 5

why is the competition policy concerned with abuse of dominance

Answer 5

concerned with large companies using their power to influence others

Question 6

why is the competition policy concerned with collusive agreements

Answer 6

collusive agreements (cartels) result in higher prices, reduced quantity and bidrigging