http://www.wawa-news.com/index.php?option=com_content&task=view&id=2960&Itemid=113
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
Subscribe to:
Post Comments (Atom)
3 comments:
I like the idea of Canada Post developing new stamps, as it will attract travelers from around the world to come to Canada. As a monopoly, Canada Post has the ability to do a lot of things - they can make changes to their system and not have to worry about losing their consumers to competitors. I agree with you on one thing, it still has competitors. Although Canada Post is a monopoly, the number of people sending mail has decreased, and the mailing industry has lost a lot of its business to electronic mail and other sources of communication. Hopefully, by generating these new stamps, more people will continue to use Canada Post. I think that they will be able to gain a large profit from these new stamps, because as you mentioned, because it is a monopoly, it will yield the largest possible profit. I look forward to seeing these stamps and hopefully it will encourage people to use Canada Post more!
oops i forgot to put my name ..
Stephanie Poon
Block F Economics 12
:)
Agreeing with Stephanie, the idea of having new stamps is a refreshing idea just in time for the Olympics. Also, it is agreeable that Canada Post does monopolize most of the postage services in Canada; however there are some major competitors such as Fedex for example. However, I am assured that with brand loyalty, us Canadians would mostly likely think of Canada Post first when sending a letter or package to family or friends. With the word Canada attaches to its name, it’s a good way to generate national pride from us which would increase brand loyalty amongst us all.
Kathy Tang
Block F
Post a Comment