Lco Case Study

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What is Economics? Economics is the science regarding the production, distribution, and use of goods, services, resources and wealth. A large part of our economy comes from the influence and decision making of our government. The Canadian Government Established the LCBO to monitor and manage the sales and distribution of liquor across Ontario. The LCBO is a government-owned company, being the only retailer of liquor in Ontario. Therefore the government holds a monopoly affect over liquor sales across Ontario. There has been much debate over whether or not the LCBO should be privatized, or kept under the control of the government. Through given research and bias it may be preferable that the government privatizes the LCBO.
In 1927 the LCBO (Liquor Control Board of Ontario) was established by Lieutenant Governor William Donald Ross; opening 86 stores, three mail order departments and four warehouses to sell liquor, wine and beer. The government created this private company at the end of prohibition, the Liquor Control Act creating in the same year of 1927, authorized the government to control all sales, transportation, and delivery of alcoholic beverages in Ontario. The corporation upholds a social responsibility to monitor and restrain sales to minors, and to those
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Annually the LCBO turns over a $1.7 billion in profit; as well an additional $570 million is gained form taxes. With a monopoly control on liquor sales the government is guaranteed a steady revenue annually. According to the LCBO’s official website, it states with a $1.740 billion dividend transferred to the government, these revenues help contribute to healthcare, and education, in Ontario. However, these inclined liquor prices add onto the taxes already taken away by Ontarians for specifics benefits, therefore in the end the inclined prices overall take away more money from the hardworking people of

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