Air Canada Deal Raises Monopoly Concerns The federal government said that the proposed joint venture between Air Canada and United Continental would create a monopoly on 10 major routes between ada Canada and the United States and substantially reduce competition on nine others. Consumers will face higher prices and even less choice on hoy, high demand at routes. The airline said the venture will provide more convenient service to customers Source CBC News Jun 27 2011 DON If this venture gets government approval what type of monopoly will be created on the 10 major high demand routes? With higher prices and restricted choice, what would be the bartler to entry? How might the venture provide more convenient service? BOLDS RKETS AND M The venture OUTPU O A. a natural monopoly OB. an ownership monopoly C. a legal monopoly OD. a non-competitive monopoly With higher prices and restricted choice, the barrier to entry is O A will decrease the economic profit made by Air Canada and United Continental OB might possibly provide more convenient service by making baggage checking simpler for connections between Canada and United Consthantal OC, will provide more convenient service by decreasing the number of choices that travellers must make on a given route OD will provide more convenient service by increasing the se of flights for travelers uc Costa Run Tech O A. the granting of landing slots and boarding gates OB. smaller demand OC. a government licence granted to Air Canada and United Continental that results in economies of scale