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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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