Question
Ontario Hydro operates in a situation of Select one: a. pure competition His monopolistic competition. c. oligopoly. d. monopoly a. fair competition.
Solution
4.2
(314 Votes)
Sophie
Master ยท Tutor for 5 years
Answer
### d. monopoly
Explanation
## Step 1: Analyzing Ontario Hydro's Market Position### Ontario Hydro is a provincial crown corporation meaning it is owned by the provincial government. It was the primary electricity generator and transmitter in Ontario, effectively controlling the market. This aligns with the definition of a monopoly from the Knowledge Summary: "Monopolies are at the opposite end of the spectrum from perfect competition."## Step 2: Eliminating Other Options### The other options, pure competition, monopolistic competition, oligopoly, and fair competition, all involve multiple competing firms. Since Ontario Hydro held a dominant position with government backing, these options are not applicable.