Illustrate what is your advice to the canadian government

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Reference no: EM1360400

Assume Canada is the only country with a production site in the world for hyperhoney infinite pasta; a wonderful product produced using a delicate, highly perishable extract obtainable from some trees that grow only in Canada. Furthermore, there is no domestic demand for this product in the country, so all production will be exported. The Canadian government has the choice of forming the pasta-producing industry either as a monopoly or as a large number of small pasta producers that will act as perfect competitors. Illustrate What is your advice to the Canadian government about which market structure to choose for pasta industry? Justify your suggestion.

Reference no: EM1360400

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