Need help with this question Needs to be roughly 200 words D

Need help with this question! Needs to be roughly 200 words.

Do you think the following statement is true or false? Justify your answer.

“Banking, insurance, large accounting firms, and brokerage firms are all oligopolies in Canada.”

Solution

Oligipoly is a market situation in which there are few firms controlling price and quantity of the items in the entire market, It is quite similar to monopoly where there are single firm controlling production and supply of a particular item in the market, Unlike other economies of the world, Canadian economy is characterised by oligipolistic market condition. Many experts say that prices of certain services such as stock trading, mortgage, general accounting, debit/credit card transactions are comparitively higher than even European Union(EU). The canadian economy is dominated by seven large banks such as Royal Bank, Canadian Imperial Bank of Commerce and others that control over 80% of banking services in the country. Similarly, the canadian insurance sector has witnessed many mergers and acquisitions and currently, the canadian insurance market is dominated by five big insurance companies such as Manulife Financial Corporation, Sun Life Financial, Inc and others. There are three major online stock brokers in Canada that controls the stock brokerage services to the customers in Canada. Due to limited number of stock brokerage firms in the market, the stock trading in Canada is quite expensive. Therefore, the given statement is true.