143-781: Fort Carlton was a Hudson's Bay Company fur trading post from 1795 until 1885. It was located along the North Saskatchewan River not far from Duck Lake , in what is now the Canadian province of Saskatchewan . The fort was rebuilt by the government of Saskatchewan as a feature of a provincial historic park and can be visited today. It is about 65 kilometres (40 mi) north of Saskatoon . First called Carlton House, there were several historic Fort Carlton posts that operated in different periods and at three locations. Two posts were established in 1795 and 1805 respectively. A series of forts named Fort Carlton operated at
286-405: A " de jure monopoly") is a form of coercive monopoly , in which a government grants exclusive privilege to a private individual or company to be the sole provider of a commodity. Monopoly may be granted explicitly, as when potential competitors are excluded from the market by a specific law , or implicitly, such as when the requirements of an administrative regulation can only be fulfilled by
429-465: A "New Discovery" in 1749, and by 1750 was titled Richmond Gulf. The name was changed to Richmond Fort and given the abbreviation RF from 1756 to 1759, it served mainly as a trade goods and provisions storage location. Additional inland posts were Capusco River and Chickney Creek, both circa 1750. Likewise, Brunswick (1776), New Brunswick (1777), Gloucester (1777), Upper Hudson (ca. 1778), Lower Hudson (1779), Rupert, and Wapiscogami Houses were established in
572-509: A PC market are price takers. The price is set by the interaction of demand and supply at the market or aggregate level. Individual companies simply take the price determined by the market and produce that quantity of output that maximizes the company's profits. If a PC company attempted to increase prices above the market level all its customers would abandon the company and purchase at the market price from other companies. A monopoly has considerable although not unlimited market power. A monopoly has
715-739: A boarding pass before boarding an airplane. Most travelers assume that this practice is strictly a matter of security. However, a primary purpose in requesting photographic identification is to confirm that the ticket purchaser is the person about to board the airplane and not someone who has repurchased the ticket from a discount buyer. The inability to prevent resale is the largest obstacle to successful price discrimination. Companies have, however, developed numerous methods to prevent resale. For example, universities require that students show identification before entering sporting events. Governments may make it illegal to resell tickets or products. In Boston, Red Sox baseball tickets can only be resold legally to
858-598: A company cannot charge more than the market price. Any market structure characterized by a downward sloping demand curve has market power – monopoly, monopolistic competition and oligopoly. The only market structure that has no market power is perfect competition. A company wishing to practice price discrimination must be able to prevent middlemen or brokers from acquiring the consumer surplus for themselves. The company accomplishes this by preventing or limiting resale. Many methods are used to prevent resale. For instance, persons are required to show photographic identification and
1001-426: A consumer's tax return has information that can be used to charge customers based on an estimate of their ability to pay. In second degree price discrimination or quantity discrimination customers are charged different prices based on how much they buy. There is a single price schedule for all consumers but the prices vary depending on the quantity of the good bought. The theory of second degree price discrimination
1144-438: A consumer's willingness to pay is rarely available. Sellers tend to rely on secondary information such as where a person lives (postal codes); for example, catalog retailers can use mail high-priced catalogs to high-income postal codes. First degree price discrimination most frequently occurs in regard to professional services or in transactions involving direct buyer-seller negotiations. For example, an accountant who has prepared
1287-549: A customer's willingness to buy a good is difficult. Asking consumers directly is fruitless: consumers do not know, and to the extent they do they are reluctant to share that information with marketers. The two main methods for determining willingness to buy are observation of personal characteristics and consumer actions. As noted information about where a person lives (postal codes), how the person dresses, what kind of car he or she drives, occupation, and income and spending patterns can be helpful in classifying. The price of monopoly
1430-492: A different price. Third degree price discrimination is the most prevalent type. There are three conditions that must be present for a company to engage in successful price discrimination. First, the company must have market power. Second, the company must be able to sort customers according to their willingness to pay for the good. Third, the firm must be able to prevent resell. A company must have some degree of market power to practice price discrimination. Without market power
1573-537: A dominant position or a monopoly in a market is often not illegal in itself; however, certain categories of behavior can be considered abusive and therefore incur legal sanctions when business is dominant. A government-granted monopoly or legal monopoly , by contrast, is sanctioned by the state, often to provide an incentive to invest in a risky venture or enrich a domestic interest group . Patents , copyrights , and trademarks are sometimes used as examples of government-granted monopolies. The government may also reserve
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#17327731485241716-400: A few entities have market power and therefore interact with their customers (monopoly or oligopoly), or suppliers (monopsony) in ways that distort the market. Monopolies can be formed by mergers and integrations, form naturally , or be established by a government. In many jurisdictions, competition laws restrict monopolies due to government concerns over potential adverse effects. Holding
1859-424: A given product or service. If there is a single seller in a certain market and there are no close substitutes for the product, then the market structure is that of a "pure monopoly". Sometimes, there are many sellers in an industry or there exist many close substitutes for the goods being produced, but nevertheless, companies retain some market power. This is termed "monopolistic competition", whereas in an oligopoly ,
2002-409: A high rate of return or monopoly prices and might represent risk premiums . Monopolies derive their market power from barriers to entry – circumstances that prevent or greatly impede a potential competitor's ability to compete in a market. There are three major types of barriers to entry: economic, legal, and deliberate. In addition to barriers to entry and competition, barriers to exit may be
2145-433: A higher price than P ∗ {\displaystyle P^{*}} and those who will not pay P ∗ {\displaystyle P^{*}} but would buy at a lower price. A price discrimination strategy is to charge less price sensitive buyers a higher price and the more price sensitive buyers a lower price. Thus additional revenue is generated from two sources. The basic problem
2288-494: A jury of HBC officials and supporters. During the trial, a crowd of armed Métis men led by Louis Riel Sr. gathered outside the courtroom. Although Sayer was found guilty of illegal trade, having evaded the HBC monopoly, Judge Adam Thom did not levy a fine or punishment. Some accounts attributed that to the intimidating armed crowd gathered outside the courthouse. With the cry, " Le commerce est libre! Le commerce est libre! " ("Trade
2431-721: A major remodelling and restoration of retail trade shops planned in 1912. Following the war, the company revitalized its fur-trade and real-estate activities, and diversified its operations by venturing into the oil business. During the Russian Civil War , the company briefly operated in the Siberian far east , even obtaining an agreement with the Soviet government until departing in 1924. The company co-founded Hudson's Bay Oil and Gas Company (HBOG) in 1926 with Marland Oil Company (which merged with Conoco in 1929). Although
2574-515: A market and what does not are relevant distinctions to make in economic analysis. In a general equilibrium context, a good is a specific concept including geographical and time-related characteristics. Most studies of market structure relax a little their definition of a good, allowing for more flexibility in the identification of substitute goods. A monopoly has at least one of these five characteristics: Market power can be estimated with Lerner index . High profit margins might not correspond to
2717-416: A maximum value then continuously decreases until total revenue is again zero. Total revenue has its maximum value when the slope of the total revenue function is zero. The slope of the total revenue function is marginal revenue. So the revenue maximizing quantity and price occur when MR = 0 {\displaystyle {\text{MR}}=0} . For example, assume that the monopoly's demand function
2860-473: A monopolist to increase its profit by charging higher prices for identical goods to those who are willing or able to pay more. For example, most economic textbooks cost more in the United States than in developing countries like Ethiopia . In this case, the publisher is using its government-granted copyright monopoly to price discriminate between the generally wealthier American economics students and
3003-454: A monopoly is that the monopoly has a downward-sloping demand curve rather than the "perceived" perfectly elastic curve of the PC company. Practically all the variations mentioned above relate to this fact. If there is a downward-sloping demand curve then by necessity there is a distinct marginal revenue curve. The implications of this fact are best made manifest with a linear demand curve. Assume that
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#17327731485243146-509: A monopoly. Often, a natural monopoly is the outcome of an initial rivalry between several competitors. An early market entrant that takes advantage of the cost structure and can expand rapidly can exclude smaller companies from entering and can drive or buy out other companies. A natural monopoly suffers from the same inefficiencies as any other monopoly. Left to its own devices, a profit-seeking natural monopoly will produce where marginal revenue equals marginal costs. Regulation of natural monopolies
3289-603: A month later, the governor and general manager met Banting at the King Edward Hotel to demand a retraction. Banting stated that the reporter had betrayed his confidence, but did not retract his statement and reaffirmed that HBC was responsible for the death of indigenous residents by supplying the wrong kind of food and introducing diseases into the Arctic. As A. Y. Jackson , the Group of Seven painter with whom Banting
3432-447: A more elastic demand for movies than do young adults because they generally have more free time. Thus theaters will offer discount tickets to seniors. Assume that by a uniform pricing system the monopolist would sell five units at a price of $ 10 per unit. Assume that his marginal cost is $ 5 per unit. Total revenue would be $ 50, total costs would be $ 25 and profits would be $ 25. If the monopolist practiced price discrimination he would sell
3575-496: A more price inelastic demand and a relatively lesser price to the group with a more elastic demand. Examples of third degree price discrimination abound. Airlines charge higher prices to business travelers than to vacation travelers. The reasoning is that the demand curve for a vacation traveler is relatively elastic while the demand curve for a business traveler is relatively inelastic. Any determinant of price elasticity of demand can be used to segment markets. For example, seniors have
3718-421: A perfectly elastic demand curve meaning that total revenue is proportional to output. Thus the total revenue curve for a competitive company is a ray with a slope equal to the market price. A competitive company can sell all the output it desires at the market price. For a monopoly to increase sales it must reduce price. Thus the total revenue curve for a monopoly is a parabola that begins at the origin and reaches
3861-477: A price increase, price elasticity tends to increase, and in the optimum case above it will be greater than one for most customers. A company maximizes profit by selling where marginal revenue equals marginal cost. A company that does not engage in price discrimination will charge the profit maximizing price, P ∗ {\displaystyle P^{*}} , to all its customers. In such circumstances there are customers who would be willing to pay
4004-619: A rebuilt Fort Langley (1840) on the Lower Fraser to Fort Kamloops by 1850 and the rest of the transportation network to York Factory on the Hudson Bay along with the New Caledonia district fur returns. The Guillaume Sayer trial in 1849 contributed to the end of the HBC monopoly. Guillaume Sayer , a Métis trapper and trader, was accused of illegal trading in furs. The Court of Assiniboia brought Sayer to trial, before
4147-751: A result of the rivalry and were inherently unprofitable. Their combined territory was extended by a licence to the North-Western Territory , which reached to the Arctic Ocean in the north and, with the creation of the Columbia Department in the Pacific Northwest , to the Pacific Ocean in the west. The NWC's regional headquarters at Fort George (Fort Astoria) was relocated to Fort Vancouver by 1825 on
4290-424: A single agent or entrepreneur, the optimal decision is to equate the marginal cost and marginal revenue of production. Nonetheless, a pure monopoly can – unlike a competitive company – alter the market price for its own convenience: a decrease of production results in a higher price. In the economics' jargon, it is said that pure monopolies have "a downward-sloping demand". An important consequence of such behaviour
4433-482: A source of market power. Barriers to exit are market conditions that make it difficult or expensive for a company to end its involvement with a market. High liquidation costs are a primary barrier to exiting. Market exit and shutdown are sometimes separate events. The decision of whether to shut down or operate is not affected by exit barriers. A company will shut down if the price falls below minimum average variable costs. While monopoly and perfect competition represent
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4576-402: A substitute. Contrary to common misconception , monopolists do not try to sell items for the highest possible price, nor do they try to maximize profit per unit, but rather they try to maximize total profit. A natural monopoly is an organization that experiences increasing returns to scale over the relevant range of output and relatively high fixed costs. A natural monopoly occurs where
4719-556: A third location starting in 1810. The last fort at this location burned down in 1885 after a period of use as a police post (see below). As a Company post it primarily dealt in provisions, namely pemmican and buffalo robes although other furs were traded as well. Lawrence Clarke served as its last Chief Factor . It was a major base of operations for the Saskatchewan District of the Hudson's Bay Company. Situated on
4862-497: A trading post. The first Fort Langley was subsequently built (1827), establishing an early settlers long lasting presence in current day southern British Columbia. The fur trade in a wet climate turned out to be marginal and quickly evolved into a salmon trade site with abundant supply in the vicinity. The HBC stretched its presence North on the coastline with Fort Simpson (1831) on the Nass River , Fort McLoughlin (1833) and
5005-406: Is P = 50 − 2 Q {\displaystyle P=50-2Q} . The total revenue function would be TR = 50 Q − 2 Q 2 {\displaystyle {\text{TR}}=50Q-2Q^{2}} and marginal revenue would be 50 − 4 Q {\displaystyle 50-4Q} . Setting marginal revenue equal to zero we have So
5148-502: Is a consumer is willing to buy only a certain quantity of a good at a given price. Companies know that consumer's willingness to buy decreases as more units are purchased. The task for the seller is to identify these price points and to reduce the price once one is reached in the hope that a reduced price will trigger additional purchases from the consumer. For example, sell in unit blocks rather than individual units. In third degree price discrimination or multi-market price discrimination
5291-404: Is a market in which one person or company is the only supplier of a particular good or service. A monopoly is characterized by a lack of economic competition to produce a particular thing, a lack of viable substitute goods , and the possibility of a high monopoly price well above the seller's marginal cost that leads to a high monopoly profit . The verb monopolise or monopolize refers to
5434-400: Is a theoretical construct, advances in information technology and micromarketing may bring it closer to the realm of possibility. Partial price discrimination can cause some customers who are inappropriately pooled with high price customers to be excluded from the market. For example, a poor student in the U.S. might be excluded from purchasing an economics textbook at the U.S. price, which
5577-681: Is defined by the total gains from trade, the monopoly setting is less efficient than perfect competition. It is often argued that monopolies tend to become less efficient and less innovative over time, becoming "complacent", because they do not have to be efficient or innovative to compete in the marketplace. Sometimes this very loss of psychological efficiency can increase a potential competitor's value enough to overcome market entry barriers, or provide incentive for research and investment into new alternatives. The theory of contestable markets argues that in some circumstances (private) monopolies are forced to behave as if there were competition because of
5720-677: Is free! Trade is free!"), the Métis loosened the HBC's previous control of the courts, which had enforced their monopoly on the settlers of Red River. Another factor was the findings of the Palliser Expedition of 1857 to 1860, led by Captain John Palliser . He surveyed the area of the prairies and wilderness from Lake Superior to the southern passes of the Rocky Mountains. Although he recommended against settlement of
5863-417: Is important information for one to remember when considering the monopoly model diagram (and its associated conclusions) displayed here. The result that monopoly prices are higher, and production output lesser, than a competitive company follow from a requirement that the monopoly not charge different prices for different customers. That is, the monopoly is restricted from engaging in price discrimination (this
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6006-401: Is known as the "revolution in monopoly theory". A monopolist can extract only one premium, and getting into complementary markets does not pay. That is, the total profits a monopolist could earn if it sought to leverage its monopoly in one market by monopolizing a complementary market are equal to the extra profits it could earn anyway by charging more for the monopoly product itself. However,
6149-400: Is not perfect. Regulators must estimate average costs. Companies have a reduced incentive to lower costs. Regulation of this type has not been limited to natural monopolies. Average-cost pricing does also have some disadvantages. By setting price equal to the intersection of the demand curve and the average total cost curve, the firm's output is allocatively inefficient as the price is less than
6292-400: Is problematic. Fragmenting such monopolies is by definition inefficient. The most frequently used methods dealing with natural monopolies are government regulations and public ownership. Government regulation generally consists of regulatory commissions charged with the principal duty of setting prices. Natural monopolies are synonymous with what is called "single-unit enterprise", a term which
6435-448: Is termed first degree price discrimination , such that all customers are charged the same amount). If the monopoly were permitted to charge individualised prices (this is termed third degree price discrimination ), the quantity produced, and the price charged to the marginal customer, would be identical to that of a competitive company, thus eliminating the deadweight loss ; however, all gains from trade (social welfare) would accrue to
6578-621: Is that typically a monopoly selects a higher price and lesser quantity of output than a price-taking company; again, less is available at a higher price. A monopoly chooses that price that maximizes the difference between total revenue and total cost. The basic markup rule (as measured by the Lerner index ) can be expressed as P − M C P = − 1 E d {\displaystyle {\frac {P-MC}{P}}={\frac {-1}{E_{d}}}} , where E d {\displaystyle E_{d}}
6721-560: Is the only market form in which price discrimination would be impossible (a perfectly competitive company has a perfectly elastic demand curve and has no market power). There are three forms of price discrimination. First degree price discrimination charges each consumer the maximum price the consumer is willing to pay. Second degree price discrimination involves quantity discounts. Third degree price discrimination involves grouping consumers according to willingness to pay as measured by their price elasticities of demand and charging each group
6864-535: Is the price elasticity of demand the firm faces. The markup rules indicate that the ratio between profit margin and the price is inversely proportional to the price elasticity of demand. The implication of the rule is that the more elastic the demand for the product the less pricing power the monopoly has. Market power is the ability to increase the product's price above marginal cost without losing all customers. Perfectly competitive (PC) companies have zero market power when it comes to setting prices. All companies of
7007-517: Is to identify customers by their willingness to pay. The purpose of price discrimination is to transfer consumer surplus to the producer. Consumer surplus is the difference between the value of a good to a consumer and the price the consumer must pay in the market to purchase it. Price discrimination is not limited to monopolies. Market power is a company's ability to increase prices without losing all its customers. Any company that has market power can engage in price discrimination. Perfect competition
7150-441: Is upon every occasion the highest which can be got. The natural price, or the price of free competition, on the contrary, is the lowest which can be taken, not upon every occasion indeed, but for any considerable time together. The one is upon every occasion the highest which can be squeezed out of the buyers, or which it is supposed they will consent to give; the other is the lowest which the sellers can commonly afford to take, and at
7293-713: The Alaska Panhandle by present-day Wrangell . The RAC-HBC agreement (1839) with the Russian American Company (RAC) provided for such a continuing presence in exchange for the HBC to supply the Russian coastal sites with agricultural products. The Puget Sound Agricultural Company subsidiary was created to supply grain, dairy, livestock and manufactured goods out of Fort Vancouver, Fort Nisqually, Fort Cowlitz and Fort Langley in present-day southern British Columbia. The company's stranglehold on
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#17327731485247436-571: The American Revolutionary War , a French squadron under Jean-François de Galaup, comte de Lapérouse captured and demolished York Factory and Prince of Wales Fort in support of the American rebels. In its trade with native peoples, Hudson's Bay Company exchanged wool blankets, called Hudson's Bay point blankets, for the beaver pelts trapped by aboriginal hunters. By 1700, point blankets accounted for more than 60 percent of
7579-679: The Beaver (1836), the first steamship to ever roam the Pacific Northwest for resupplying its coastline sites. The HBC was securing a trading monopoly on the coastline keeping away independent American traders: "By 1837, American competition on the North West Coast was effectively over". The HBC gained more control of the fur trade with both the coastline and inland tribes to access the fur rich New Caledonia district in current day northern British Columbia: "monopoly control of
7722-696: The Carlton Trail , running from the Red River Colony in present-day Manitoba to Fort Edmonton in what is now Alberta , Fort Carlton served as an important centre for travellers. Treaty Six between the Canadian Crown and various Cree and Saulteaux First Nations was initially negotiated and signed near the Fort in 1876. Big Bear (Mistahimaskwa) had used the site in his initial negotiations for Treaty Six in about 1884, and finally,
7865-603: The Fraser River . The three boats 40some crew led by the James McMillan were first to officially ever make it to Puget Sound from the continent, to reach its northern end into Boundary Bay and to bypass the mouth of the Fraser. They shortcut through two mainland rivers and a portage in order to finally reach the lower Fraser. Friendly tribes were identified along with subsistence farming land suitable for sustaining
8008-545: The Netherlands , were sold by the end of 2019. Until March 2020, the company was listed on the Toronto Stock Exchange under the symbol "HBC.TO" until Richard Baker and a group of shareholders took the company private. HBC is, as of 2022, the majority owner of eCommerce companies Saks Fifth Avenue and Saks Off 5th , both established as separate operating companies in 2021. HBC wholly owns SFA,
8151-677: The Nonsuch , commanded by Captain Zachariah Gillam , while the Eaglet was commanded by Captain William Stannard and accompanied by Radisson. On 5 June 1668, both ships left port at Deptford , England, but the Eaglet was forced to turn back off the coast of Ireland. The Nonsuch continued to James Bay , the southern portion of Hudson Bay, where its explorers founded, in 1668, the first fort on Hudson Bay, Charles Fort at
8294-900: The North-West Territories , was brought under Canadian jurisdiction under the terms of the Rupert's Land Act 1868 , enacted by the Parliament of the United Kingdom. The Deed enabled the admission of the fifth province, Manitoba , to the Confederation on 15 July 1870, the same day that the deed itself came into force. During the 19th century the Hudson's Bay Company went through great changes in response to such factors as growth of population and new settlements in part of its territory, and ongoing pressure from Britain. It seemed unlikely that it would continue to control
8437-682: The Siskiyou Trail , into Northern California as far south as the San Francisco Bay Area , where the company operated a trading post at Yerba Buena ( San Francisco ). The southern-most camp of the company was French Camp , east of San Francisco in the Central Valley adjacent to the future site of the city of Stockton . These trapping brigades in Northern California faced serious risks, and were often
8580-465: The coureurs des bois permission to scout the distant territory". Despite this refusal, in 1659 Radisson and Groseilliers set out for the upper Great Lakes basin. A year later they returned to Montreal with premium furs, evidence of the potential of the Hudson Bay region. Subsequently, they were arrested by French authorities for trading without a licence and fined, and their furs were confiscated by
8723-427: The process by which a company gains the ability to raise prices or exclude competitors. In economics, a monopoly is a single seller. In law, a monopoly is a business entity that has significant market power, that is, the power to charge overly high prices, which is associated with unfair price raises . Although monopolies may be big businesses, size is not a characteristic of a monopoly. A small business may still have
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#17327731485248866-688: The 17th century, the French colonists in North America, based in New France , operated a de facto monopoly in the North American fur trade . Two French traders, Pierre-Esprit Radisson and Médard des Groseilliers (Médard de Chouart, Sieur des Groseilliers), Radisson's brother-in-law, learned from the Cree that the best fur country lay north and west of Lake Superior , and that there
9009-595: The 1818 Treaty settled the 49th degree parallel border only as far as the Rocky Mountains , the HBC was looking for a site further West in case the parallel border would become further extended at the end of the 10 years joint occupancy term. By 1824, the HBC was commissioning an expedition to travel from the Fort George regional headquarter on the southern shore of the Columbia River all the way to
9152-592: The American Fort Hall , 483 km (300 mi) to the east. In 1837, it purchased Fort Hall, also along the route of the Oregon Trail . The outpost director displayed the abandoned wagons of discouraged settlers to those seeking to move west along the trail. HBC trappers were also deeply involved in the early exploration and development of Northern California . Company trapping brigades were sent south from Fort Vancouver, along what became known as
9295-775: The Columbia River replaced Spokane House in 1825. Fort Umpqua was established in 1832 in present-day southern Oregon after the Willamette River had been explored up toward its headwaters by mainly the NWC. Nisqually House was built during the same year to establish a presence further North on Puget Sound in present-day State of Washington , resulting in Fort Nisqually a few years later closer to present-day Canadian sites. The HBC established Fort Boise in 1834 (in present-day southwestern Idaho) to compete with
9438-546: The East India Company in 1732, which it viewed as a major competitor. Hudson's Bay Company's first inland trading post was established by Samuel Hearne in 1774 with Cumberland House, Saskatchewan . Conversely, a number of inland HBC "houses" pre-date the construction of Cumberland House, in 1774. Henley House, established in 1743, inland from Hudson Bay, at the confluence of the Albany and Kabinakagami Rivers,
9581-497: The HBC controlled nearly all trading operations in the Pacific Northwest region and was based at its headquarters at Fort Vancouver, on the Columbia River . Although claims to the region were by agreement in abeyance, commercial operating rights were nominally shared by the United States and Britain through the Anglo-American Convention of 1818 , but company policy, enforced via Chief Factor John McLoughlin of
9724-529: The HBC paddle wheeler Distributor were responsible for spreading the influenza virus down the Slave River and Mackenzie River . Less than a decade after the 1918 global flu pandemic , a similar virus spread territory-wide over the summer and autumn, devastating the aboriginal population of the north. Returning from the trip, Banting gave an interview in Montreal with a Toronto Star reporter under
9867-452: The HBC. It became operative for the outfit of 1780 and was the first joint-stock company in Canada and possibly North America. The agreement lasted one year. A second agreement established in 1780 had a three-year term. The company became a permanent entity in 1783. By 1784, the NWC had begun to make serious inroads into the HBC's profits. The North West Company (NWC) was the main rival in
10010-617: The Royal Navy in the Battle of Hudson's Bay (5 September 1697), the largest naval battle in the history of the North American Arctic. D'Iberville's depleted French force captured York Factory by laying siege to the fort and pretending to be a much larger army. The French retained all of the outposts except Fort Albany until 1713. A small French and Indian force attacked Fort Albany again in 1709 during Queen Anne's War but
10153-460: The United States and Canada. The company's namesake business division is Hudson's Bay , commonly referred to as The Bay ( La Baie in French). After incorporation by English royal charter in 1670, the company was granted a right of "sole trade and commerce" over an expansive area of land known as Rupert's Land , comprising much of the Hudson Bay drainage basin . This right effectively gave
10296-549: The West. The Society floated £2 million in public shares on non-ceded land held ostensibly by the Hudson's Bay Company as an asset and leveraged this asset for collateral for these funds. These funds allowed the Society the financial means to weather the financial collapse of 1866 which destroyed many competitors and invest in railways in North America. In 1869, after rejecting the American government offer of CA$ 10 million,
10439-551: The agreement that his statements on HBC would remain off the record. The newspaper nonetheless published the conversation, which rapidly reached a wide audience across Europe and Australia. Banting was angry at the leak, having promised the Department of the Interior not to make any statements to the press prior to clearing them. The article noted that Banting had given the journalist C. R. Greenaway repeated instances of how
10582-468: The area of modern-day Canada, and stretches into the present-day north-central United States . The specific boundaries remained unknown at the time. Rupert's Land would eventually become Canada's largest land "purchase" in the 19th century. The HBC established six posts between 1668 and 1717. Rupert House (1668, southeast), Moose Factory (1673, south) and Fort Albany, Ontario (1679, west) were erected on James Bay; three other posts were established on
10725-403: The average cost of production "declines throughout the relevant range of product demand". The relevant range of product demand is where the average cost curve is below the demand curve. When this situation occurs, it is always more efficient for one large company to supply the market than multiple smaller companies; in fact, absent government intervention in such markets, will naturally evolve into
10868-467: The case that at the profit-maximizing quantity MR and MC are less than price, which further implies that a monopoly produces less quantity at a higher price than if the market were perfectly competitive. The fact that a monopoly has a downward-sloping demand curve means that the relationship between total revenue and output for a monopoly is much different from that of competitive companies. Total revenue equals price times quantity. A competitive company has
11011-583: The coastal fur trade allowed the HBC to impose a uniform tariff on both sides of the Coast Mountains". By 1843, under pressure from the Americans to withdraw further North with the looming Oregon Treaty border negotiation finalized in 1846, and strong of its coastal presence on the northern coast, HBC built Fort Victoria at the southern end of present-day Vancouver Island in southern BC. A well sheltered ocean port with agricultural potential in
11154-558: The companies interact strategically. In general, the main results from this theory compare the price-fixing methods across market structures, analyze the effect of a certain structure on welfare, and vary technological or demand assumptions in order to assess the consequences for an abstract model of society. Most economic textbooks follow the practice of carefully explaining the "perfect competition" model, mainly because this helps to understand departures from it (the so-called "imperfect competition" models). The boundaries of what constitutes
11297-573: The company a commercial monopoly over that area. The HBC functioned as the de facto government in Rupert's Land for nearly 200 years until the HBC relinquished control of the land to Canada in 1869 as part of the Deed of Surrender , authorized by the Rupert's Land Act 1868 . At its peak, the company controlled the fur trade throughout much of the English- and later British-controlled North America . By
11440-472: The company a monopoly over the region drained by all rivers and streams flowing into Hudson Bay in northern parts of present-day Canada, taking possession on behalf of England. The area was named " Rupert's Land " after Prince Rupert, the first governor of the company appointed by the King. This drainage basin of Hudson Bay spans 3,861,400 square kilometres (1,490,900 sq mi), comprising over one-third of
11583-442: The company approved the return of Rupert's Land to Britain. The government gave it to Canada and loaned the new country the £300,000 required to compensate HBC for its losses. HBC also received one-twentieth of the fertile areas to be opened for settlement and retained title to the lands on which it had built trading establishments. The deal, known as the Deed of Surrender , came into force the following year. The resulting territory,
11726-465: The company diversified into a number of areas, its department store business is the only remaining part of the company's operations, in the form of department stores under the Hudson's Bay brand. The company also established new trading posts in the Canadian Arctic. The medical scientist Frederick Banting was travelling in the Arctic in 1927 when he realized that crew or passengers on board
11869-505: The company's Columbia District , was to discourage U.S. settlement of the territory. The company's effective monopoly on trade virtually forbade any settlement in the region. Over and above the NWC Fort George headquarters site, the HBC carried on the early presence in the region of the NWC when it merged in 1821 with noteworthy sites: Spokane House , Fort Okanogan and Fort Nez Percés . Fort Colville located further North on
12012-452: The company's profits during the monopoly years. Its trade covered 7,770,000 km (3,000,000 sq mi), and it had 1,500 contract employees. Between 1820 and 1870, the HBC issued its own paper money . The notes, denominated in sterling, were printed in London and issued at York Factory for circulation primarily in the Red River Colony . Although the HBC maintained a monopoly on
12155-428: The conflict played out in North America as well. D'Iberville raided Fort Severn in 1690 but did not attempt to raid the well-defended local headquarters at York Factory. In 1693 the HBC recovered Fort Albany ; d'Iberville captured York Factory in 1694, but the company recovered it the next year. In 1697, d'Iberville again commanded a French naval raid on York Factory. On the way to the fort he defeated three ships of
12298-565: The decade of the 1770s. These post-date Cumberland House, yet speak to the expanding inland incursion of the HBC in the last quarter of the 18th century. Minor posts also during this time period include Mesackamy/Mesagami Lake (1777), Sturgeon Lake (1778), Beaver Lake Posts. In 1779, other traders founded the North West Company (NWC) in Montreal as a seasonal partnership to provide more capital and to continue competing with
12441-778: The entity that operates Saks Fifth Avenue's physical locations; O5, the operating company for Saks Off 5th stores; The Bay, an eCommerce marketplace and Hudson's Bay, the operating company for Hudson's Bay's brick-and-mortar stores. In July 2024, HBC announced that it would acquire the Neiman Marcus Group for US$ 2.65 billion and fold it into the new flagship entity Saks Fifth Avenue Global. HBC owns or controls approximately 3.7 million square metres (40 million square feet) of gross leasable real estate through its real estate and investment arm, HBC Properties and Investments, established in October 2020. For much of
12584-628: The expedition and brought the two to England to raise financing. Radisson and Groseilliers arrived in London in 1665 at the height of the Great Plague . Eventually, the two met and gained the sponsorship of Prince Rupert . Prince Rupert introduced the two to his cousin, the reigning king – Charles II . In 1668 the English expedition acquired two ships, the Nonsuch and the Eaglet , to explore possible trade into Hudson Bay. Groseilliers sailed on
12727-414: The extremes of market structures there is some similarity. The cost functions are the same. Both monopolies and perfectly competitive (PC) companies minimize cost and maximize profit. The shutdown decisions are the same. Both are assumed to have perfectly competitive factors markets. There are distinctions; some of the most important are as follows: The most significant distinction between a PC company and
12870-519: The fall and winter, First Nations men and European fur trappers accomplished the vast majority of the animal trapping and pelt preparation. They travelled by canoe and on foot to the forts to sell their pelts. In exchange they typically received popular trade-goods such as knives, kettles, beads, needles, and the Hudson's Bay point blanket . The arrival of the First Nations trappers was one of
13013-429: The first cargo of fur resulting from trade in Hudson Bay. The bulk of the fur – worth £1,233 – was sold to Thomas Glover, one of London's most prominent furriers. This and subsequent purchases by Glover proved the viability of the fur trade in Hudson Bay. A royal charter from King Charles II incorporated "The Governor and Company of Adventurers of England, trading into Hudson's Bay" on 2 May 1670. The charter granted
13156-581: The first to explore relatively uncharted territory. They included the lesser known Peter Skene Ogden and Samuel Black . The HBC also operated a store in what were then known as the Sandwich Islands (now the Hawaiian Islands ), engaging in merchant shipping to the islands between 1828 and 1859. Extending the presence it had built in present-day British Columbia northern coast, the HBC reached by 1838 as far North as Fort Stikine in
13299-407: The first unit for $ 17 the second unit for $ 14 and so on which is listed in the table below. Total revenue would be $ 55, his total cost would be $ 25 and his profit would be $ 30. Several things are worth noting. The monopolist acquires all the consumer surplus and eliminates practically all the deadweight loss because he is willing to sell to anyone who is willing to pay at least the marginal cost. Thus
13442-570: The following year he surrendered here after his engagement at Steele Narrows . The Prince Albert blockhouse was employed by the Royal North-West Mounted Police on evacuating from Fort Carlton after the first fire. The North-West Mounted Police leased the fort from the HBC in the 1880s, and it was its main base in the Saskatchewan Valley region. Following the Battle of Duck Lake it was abandoned by
13585-400: The form of price control is necessary as it helped efficient market. To reduce prices and increase output, regulators often use average cost pricing. By average cost pricing, the price and quantity are determined by the intersection of the average cost curve and the demand curve. This pricing scheme eliminates any positive economic profits since price equals average cost. Average-cost pricing
13728-573: The fox fur trade always favoured the company: "For over $ 100,000 of fox skins, he estimated that the Eskimos had not received $ 5,000 worth of goods." He traced this treatment to health, consistent with reports made in previous years by RCMP officers, suggesting that "the result was a diet of 'flour, sea-biscuits , tea and tobacco,' with the skins that once were used for clothing traded merely for 'cheap whiteman's goods. ' " The HBC fur trade commissioner called Banting's remarks "false and slanderous", and
13871-603: The fur trade during the early to mid-19th century, there was competition from James Sinclair and Andrew McDermot (Dermott), independent traders in the Red River Colony. They shipped furs by the Red River Trails to Norman Kittson , a buyer in the United States. In addition, Americans controlled the maritime fur trade on the Northwest Coast until the 1830s. Throughout the 1820s and the 1830s,
14014-553: The fur trade. The competition led to the small Pemmican War in 1816. The Battle of Seven Oaks on 19 June 1816 was the climax of the long dispute. In 1821, the North West Company of Montreal and Hudson's Bay Company were forcibly merged by intervention of the British government to put an end to often-violent competition. 175 posts, 68 of them the HBC's, were reduced to 52 for efficiency and because many were redundant as
14157-479: The future of the West. The iconic department store today evolved from trading posts at the start of the 19th century, when they began to see demand for general merchandise grow rapidly. HBC soon expanded into the interior and set-up posts along river settlements that later developed into the modern cities of Winnipeg, Calgary and Edmonton . In 1857, the first sales shop was established in Fort Langley . This
14300-429: The generally poorer Ethiopian economics students. Similarly, most patented medications cost more in the U.S. than in other countries with a (presumed) poorer customer base. Typically, a high general price is listed, and various market segments get varying discounts. This is an example of framing to make the process of charging some people higher prices more socially acceptable. Perfect price discrimination would allow
14443-526: The government. Determined to establish trade in the Hudson Bay area, Radisson and Groseilliers approached a group of English colonial merchants in Boston to help finance their explorations. The Bostonians agreed on the plan's merits, but their speculative voyage in 1663 failed when their ship ran into pack ice in Hudson Strait . Boston-based English commissioner Colonel George Cartwright learned of
14586-626: The high points of the year, met with pomp and circumstance. The highlight was very formal, an almost ritualized "Trading Ceremony" between the Chief Trader and the Captain of the aboriginal contingent who traded on their behalf. During the initial years of the fur trade, prices for items varied from post to post. The early coastal factory model of the English contrasted with the system of the French, who established an extensive system of inland posts at native villages and sent traders to live among
14729-468: The inverse demand curve is of the form x = a − b y {\displaystyle x=a-by} . Then the total revenue curve is TR = a y − b y 2 {\displaystyle {\text{TR}}=ay-by^{2}} and the marginal revenue curve is thus MR = a − 2 b y {\displaystyle {\text{MR}}=a-2by} . From this several things are evident. First,
14872-707: The manner of the Dutch fur-trading operations in New Netherland . By adoption of the Standard of Trade in the 18th century, the HBC ensured consistent pricing throughout Rupert's Land. A means of exchange arose based on the " Made Beaver " (MB); a prime pelt, worn for a year and ready for processing: "the prices of all trade goods were set in values of Made Beaver (MB) with other animal pelts, such as squirrel, otter and moose quoted in their MB (made beaver) equivalents. For example, two otter pelts might equal 1 MB". During
15015-466: The marginal cost (which is the output quantity for a perfectly competitive and allocatively efficient market). In 1848, J.S. Mill was the first individual to describe monopolies with the adjective "natural". He used it interchangeably with "practical". At the time, Mill gave the following examples of natural or practical monopolies: gas supply, water supply, roads, canals, and railways. In his Social Economics , Friedrich von Wieser demonstrated his view of
15158-587: The marginal revenue curve has the same x {\displaystyle x} -intercept as the inverse demand curve. Second, the slope of the marginal revenue curve is twice that of the inverse demand curve. What is not quite so evident is that the marginal revenue curve is below the inverse demand curve at all points ( y ≥ 0 {\displaystyle y\geq 0} ). Since all companies maximise profits by equating MR {\displaystyle {\text{MR}}} and MC {\displaystyle {\text{MC}}} it must be
15301-402: The mid-19th century, the company evolved into a mercantile business selling a wide variety of products from furs to fine homeware in a small number of sales shops (as opposed to trading posts ) across Canada. These shops were the first step towards the department stores the company owns today. In 2006, Jerry Zucker , an American businessman, bought HBC for US$ 1.1 billion. In 2008, HBC
15444-401: The monopolist and none to the consumer. In essence, every consumer would be indifferent between going completely without the product or service and being able to purchase it from the monopolist. As long as the price elasticity of demand for most customers is less than one in absolute value , it is advantageous for a company to increase its prices: it receives more money for fewer goods. With
15587-445: The monopolist to charge each customer the exact maximum amount they would be willing to pay. This would allow the monopolist to extract all the consumer surplus of the market. A domestic example would be the cost of airplane flights in relation to their takeoff time; the closer they are to flight, the higher the plane tickets will cost, discriminating against late planners and often business flyers. While such perfect price discrimination
15730-559: The mouth of the Rupert River . It later became known as "Rupert House", and developed as the community of present-day Waskaganish , Quebec. Both the fort and the river were named after the sponsor of the expedition, Prince Rupert of the Rhine, one of the major investors and soon to become the new company's first governor. After a successful trading expedition over the winter of 1668–69, Nonsuch returned to England on 9 October 1669 with
15873-481: The north bank of the Columbia River; it became the HBC base of operations on the Pacific Slope. Before the merger, the employees of the HBC, unlike those of the North West Company, did not participate in its profits. After the merger, with all operations under the management of Sir George Simpson (1826–60), the company had a corps of commissioned officers: 25 chief factors and 28 chief traders, who shared in
16016-402: The one monopoly profit theorem is not true if customers in the monopoly good are stranded or poorly informed, or if the tied good has high fixed costs. A pure monopoly has the same economic rationality of perfectly competitive companies, i.e. to optimise a profit function given some constraints. By the assumptions of increasing marginal costs, exogenous inputs' prices, and control concentrated on
16159-459: The police and Prince Albert Volunteers , then it was briefly occupied by Gabriel Dumont 's Métis forces. The rebels soon chose to withdraw to Batoche . During the 1885 conflict, the fort was destroyed by fire. Fort Carlton was reconstructed in 1967 and it was designated a National Historic Site of Canada in 1976. It features a partial reconstruction of the fort c. 1880, including four replica buildings of "Red River frame" construction. In 1986
16302-508: The postal service as a natural monopoly: "In the face of [such] single-unit administration, the principle of competition becomes utterly abortive. The parallel network of another postal organization, beside the one already functioning, would be economically absurd; enormous amounts of money for plant and management would have to be expended for no purpose whatever." Overall, most monopolies are man-made monopolies, or unnatural monopolies, not natural ones. A government-granted monopoly (also called
16445-445: The power to raise prices in a small industry (or market). A monopoly may also have monopsony control of a sector of a market. A monopsony is a market situation in which there is only one buyer. Likewise, a monopoly should be distinguished from a cartel (a form of oligopoly), in which several providers act together to coordinate services, prices or sale of goods. Monopolies, monopsonies and oligopolies are all situations in which one or
16588-426: The power to set prices or quantities although not both. A monopoly is a price maker. The monopoly is the market and prices are set by the monopolist based on their circumstances and not the interaction of demand and supply. The two primary factors determining monopoly market power are the company's demand curve and its cost structure. Market power is the ability to affect the terms and conditions of exchange so that
16731-455: The price discrimination promotes efficiency. Secondly, by the pricing scheme price = average revenue and equals marginal revenue. That is the monopolist behaving like a perfectly competitive company. Thirdly, the discriminating monopolist produces a larger quantity than the monopolist operating by a uniform pricing scheme. Successful price discrimination requires that companies separate consumers according to their willingness to buy. Determining
16874-403: The price of a product is set by a single company (price is not imposed by the market as in perfect competition). Although a monopoly's market power is great it is still limited by the demand side of the market. A monopoly has a negatively sloped demand curve, not a perfectly inelastic curve. Consequently, any price increase will result in the loss of some customers. Price discrimination allows
17017-453: The product or service less than its price, monopoly pricing creates a deadweight loss referring to potential gains that went neither to the monopolist nor to consumers. Deadweight loss is the cost to society because it is inefficient. Given the presence of this deadweight loss, the combined surplus (or wealth) for the monopolist and consumers is necessarily less than the total surplus obtained by consumers by perfect competition. Where efficiency
17160-589: The region was broken by the first successful large wagon train to reach Oregon in 1843 , led by Marcus Whitman . In the years that followed, thousands of emigrants poured into the Willamette Valley of Oregon. In 1846, the United States acquired full authority south of the 49th parallel ; the most settled areas of the Oregon Country were south of the Columbia River in what is now Oregon. McLoughlin, who had once turned away would-be settlers when he
17303-567: The region, the report sparked a debate. It ended the myth publicized by Hudson's Bay Company: that the Canadian West was unfit for agricultural settlement. In 1863, the International Financial Society bought controlling interest in the HBC, signalling a shift in the company's outlook: most of the new shareholders were less interested in the fur trade than in real estate speculation and economic development in
17446-490: The revenue maximizing quantity for the monopoly is 12.5 units and the revenue-maximizing price is 25. A company with a monopoly does not experience price pressure from competitors, although it may experience pricing pressure from potential competition. If a company increases prices too much, then others may enter the market if they are able to provide the same good, or a substitute, at a lesser price. The idea that monopolies in markets with easy entry need not be regulated against
17589-412: The risk of losing their monopoly to new entrants. This is likely to happen when a market's barriers to entry are low. It might also be because of the availability in the longer term of substitutes in other markets. For example, a canal monopoly, while worth a great deal during the late 18th century United Kingdom, was worth much less during the late 19th century because of the introduction of railways as
17732-445: The same time continue their business. ...Monopoly, besides, is a great enemy to good management. – Adam Smith (1776), The Wealth of Nations According to the standard model, in which a monopolist sets a single price for all consumers, the monopolist will sell a lesser quantity of goods at a higher price than would companies by perfect competition . Because the monopolist ultimately forgoes transactions with consumers who value
17875-406: The seller divides the consumers into different groups according to their willingness to pay as measured by their price elasticity of demand. Each group of consumers effectively becomes a separate market with its own demand curve and marginal revenue curve. The firm then attempts to maximize profits in each segment by equating MR and MC, Generally the company charges a higher price to the group with
18018-407: The site was designated a provincial park of Saskatchewan. Hudson%27s Bay Company The Hudson's Bay Company ( HBC ; French : Compagnie de la Baie d'Hudson ) is a Canadian retail business group. A fur trading business for much of its existence, it became the largest and oldest corporation in Canada, before evolving into a major fashion retailer, operating retail stores across both
18161-648: The student may have been able to purchase at the Ethiopian price. Similarly, a wealthy student in Ethiopia may be able to or willing to buy at the U.S. price, though naturally would hide such a fact from the monopolist so as to pay the reduced third world price. These are deadweight losses and decrease a monopolist's profits. Deadweight loss is considered detrimental to society and market participation. As such, monopolists have substantial economic interest in improving their market information and market segmenting . There
18304-430: The study of management structures, which directly concerns normative aspects of economic competition, and provides the basis for topics such as industrial organization and economics of regulation . There are four basic types of market structures in traditional economic analysis: perfect competition , monopolistic competition , oligopoly and monopoly. A monopoly is a structure in which a single supplier produces and sells
18447-442: The team. The three basic forms of price discrimination are first, second and third degree price discrimination. In first degree price discrimination the company charges the maximum price each customer is willing to pay. The maximum price a consumer is willing to pay for a unit of the good is the reservation price. Thus for each unit the seller tries to set the price equal to the consumer's reservation price. Direct information about
18590-506: The trade. The number of indigo stripes (a.k.a. points) woven into the blankets identified its finished size. A long-held misconception is that the number of stripes was related to its value in beaver pelts. A parallel may be drawn between the HBC's control over Rupert's Land with the trade monopoly and government functions enjoyed by the East India Company over India during roughly the same period. The HBC invested £10,000 in
18733-399: The treaty's many provisions, it required France to relinquish all claims to Great Britain on the Hudson Bay, which again became a British possession. (The Kingdom of Great Britain had been established following the union of Scotland and England in 1707). After the treaty, the HBC built Prince of Wales Fort , a stone star fort at the mouth of the nearby Churchill River . In 1782, during
18876-644: The tribes of the region, learning their languages and often forming alliances through marriages with indigenous women. In March 1686 the French sent a raiding party under the Chevalier des Troyes more than 1,300 km (810 mi) to capture the HBC posts along James Bay. The French appointed Pierre Le Moyne d'Iberville , who had shown great heroism during the raids, as commander of the company's captured posts. In 1687 an English attempt to resettle Fort Albany failed due to strategic deceptions by d'Iberville. After 1688 England and France were officially at war , and
19019-407: The venture for itself, thus forming a government monopoly , for example with a state-owned company . Monopolies may be naturally occurring due to limited competition because the industry is resource intensive and requires substantial costs to operate (e.g., certain railroad systems). Market structure is determined by following factors: In economics, the idea of monopolies is important in
19162-481: The vicinity would allow the new regional headquarter to further develop the trade on salmon, timber and cranberries. Trade via the Hawaiian post was also increasing. The Fort Rupert (1849) at the northern end of the island would open up access to coal fields. On the continent mainland, Fort Hope and Fort Yale (1848) were built to extend the HBC presence on the Fraser River as far as navigable. Brigades would link
19305-520: The western shore of Hudson Bay proper: New Severn (1685), York Factory (1684), and Fort Churchill (1717). Inland posts were not built until 1774. After 1774, York Factory became the main post because of its convenient access to the vast interior waterway-systems of the Saskatchewan and Red rivers. Originally called "factories" because the "factor" , i.e., a person acting as a mercantile agent, did business from there, these posts operated in
19448-534: Was a "frozen sea" still further north. Assuming this was Hudson Bay, they sought French backing for a plan to set up a trading post on the Bay in order to reduce the cost of moving furs overland. According to Peter C. Newman , "concerned that exploration of the Hudson Bay route might shift the focus of the fur trade away from the St. Lawrence River , the French governor", Marquis d'Argenson (in office 1658–61), "refused to grant
19591-593: Was acquired by NRDC Equity Partners , which also owned the upmarket American department store Lord & Taylor . From 2008 to 2012, the HBC was run through a holding company of NRDC, Hudson's Bay Trading Company , which was dissolved in early 2012. HBC's U.S. headquarters are in Lower Manhattan , New York City, while its Canadian headquarters are in Toronto . The company spun off most of its European operations by August 2019 and its remaining stores there, in
19734-409: Was company director, then welcomed them from his general store at Oregon City . He later became known as the "Father of Oregon". The HBC also carried on the early presence in the region of the NWC in present-day central and northern British Columbia with noteworthy sites: Fort Alexandria , Fort d'Épinette (Fort St. John) , Fort St. James , Fort George and Fort Shuswap (Fort Kamloops) . Since
19877-399: Was dependent on Albany River – Fort Albany for lines of communication, was not "finished" until 1768. Next, the inland houses of Split Lake and Nelson Houses were established between 1740 and 1760. These were dependent on York River – York Factory and Churchill River, respectively. Although not inland, Richmond Fort was established in 1749. This was on an island within Hudson Bay. It was titled
20020-589: Was followed by other sales shops in Fort Victoria (1859), Winnipeg (1881), Calgary (1884), Vancouver (1887), Vernon (1887), Edmonton (1890), Yorkton (1898), and Nelson (1902). The first of the grand "original six" department stores was built in Calgary in 1913. The other department stores that followed were in Edmonton, Vancouver, Victoria, Saskatoon , and Winnipeg. The First World War interrupted
20163-650: Was travelling, noted in his memoir that since neither the governor nor the general manager had been to the Arctic, the meeting ended with them asking Banting's advice on what HBC ought to do: "He gave them some good advice and later he received a card at Christmas with the Governor's best wishes." Banting maintained this position in his report to the Department of the Interior: Monopoly A monopoly (from Greek μόνος , mónos , 'single, alone' and πωλεῖν , pōleîn , 'to sell')
20306-640: Was unsuccessful. The economic consequences of the French possession of these posts for the company were significant; the HBC did not pay any dividends for more than 20 years. See Anglo-French conflicts on Hudson Bay . With the ending of the Nine Years' War in 1697, and the War of the Spanish Succession in 1713 with the signing of the Treaty of Utrecht , France had made substantial concessions. Among
20449-591: Was used in the 1914 book Social Economics written by Friedrich von Wieser. As mentioned, government regulations are frequently used with natural monopolies to help control prices. An example that can illustrate this can be found when looking at the United States Postal Service, which has a monopoly over types of mail. According to Wieser, the idea of a competitive market within the postal industry would lead to extreme prices and unnecessary spending, and this highlighted why government regulation in
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