Question
A friend of yours comments that the reason airfares are so high in Canada is because Bombardier Inc. is essentially a monopoly in Canada and,
A friend of yours comments that the reason airfares are so high in Canada is because
Bombardier Inc. is essentially a monopoly in Canada and, as such, charge monopoly process for
its planes. These high prices paid by Canadian airlines are then passed to consumers through
higher airfare. They claim to have evidence of this by citing the country's aerospace industry
CR4 is 1 and the HHI is just under 10,000. Without getting into the actual causes of high airfares
in Canada, briefly explain how would you respond to your friend's use of the HHI and CR4?
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