This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Our economy today consists of several different types of markets. There are some that have an overwhelming power within the market, whereas others have very little. The most commonly known is the monopoly: a fi rm that produces the entire market supply of a particular good or service. This has the most compared to the other market systems such as an oligopoly, a monopolistic competition and a perfect competition. Each of these different market systems has their own unique qualities that make them stand out from the rest. A perfect competition is one in which the buyers and/or sellers have no market power. There is no true perfect competition, but eBay is the closest to it. This website has no economic power to raise or lower its prices, but deals with bids from people all around the world. Another way that eBay resembles a perfect competition is its availability to everyone. Access to the Internet is the only barrier to this market. Once logged in, a person has access to be a buyer or a seller to all others who are members of the market. Within eBay, there is an immense amount of products being bid on and sold at any given time. Within eBay are hundreds of thousands of sellers, each representing their own firm trying to get the customer to bid on their product instead of the next guy on the list. Among eBay are other similar websites that make it easy to buy or sell goods, without having any market power. Craigs List and Amazon are other sites that are useful to the common man to exchange goods. Amazon has been around slightly longer, but eBay has become more popular since its creation. I ts popularity is due to commercials, billboards, and more popular since its creation....
View Full Document
- Spring '09