Chapter 10 -- Industrial Organization in Canada

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Canada Post Release New Stamps

Summary
Canada Post wants to mark milestones and celebrations on stamps to hold a Canadian memory. Some exciting events include the 2010 Winter Olympics and Paralympic Winter Games. Robert Waite, Chairman of the Stamp Advisory Committee and Senior vice president of Corporate
Social Responsibility at Canada Post says, “There was a very diverse and impressive number of topics to choose from, which made final selection challenging. But in the end I believe we have created an outstanding stamp program, one which Canadians will embrace with pride."

Connection
In Chapter 10, the definition of monopoly is that it occurs when only one seller of a good or service exists in a given industry. In this case, Canada Post, a postal system is categorized as a government monopoly. This means that that the post office is operated by the government itself. Since it is the only company in the industry, it has easy control over the price of the product. Therefore, it does not engage in a great deal of advertising since it less competitive.

Reflection
Although, Canada Post is the only one firm involved in the Canadian monopoly, that firm still may have competition. It competes with all other industries for the consumer dollar because it is not the only form of communication available to the consumer. I believe that since it sets an advantage of a single price for all consumers, the quantity of goods are lower at a high cost under perfect competition. Therefore, it will yield the largest possible profits. However, Canada post may not remain monopoly forever unless the barriers to the entry of new firms are substantial