Canada Post: Example of Monopoly Market

Canada Post : Example of Monopoly Market

Table of Contents
1. Introduction
2. Market structure
3. Demand and Supply
4. Pricing
5. Externalities
6. Government Intervention
7. Recommendations
8. Conclusion

Introduction
1. Canada Post Corporation is established in 1981.
2. The Federal Government is the regulator of the Canada
Post.
3. It is the Canada’s national postal service
(Digitalcommons.law.yale.edu 2020).
4. The organization is privileged with a set of unique
economic activities.
5. Canada Post owns monopoly power over the domestic
mailing system.

Roe of Demand and Supply to the Monopoly Power
• Since the last three decades , the company has been
successfully retaining its monopoly power over across the
country.
• Under monopoly , price gets determined at the profit-
maximizing point on the demand curve.
• Firm continues the supply until the marginal cost gets equal to
the marginal revenue.
• The monopoly outcome corresponds to the market demand .