Question

Which of the four basic market(Monopoly, Monopolistic Competition, Perfect Competition, Oligopoly) structures BEST describes the Internet? Explain and identify the ways in which the Internet does not fit your choice of market structures.

Answer 1

INTERNET IS perfect competition. this is because as we can see everyone today has an access to internet. they can easily get the prices of anything. the seller cannot hike the price as he will lose the market to a seller with a lower price. the identical goods have to be sold at a fixed market price as we can see there is a cut throat competititon on internet.

INTERNET is no monopoly as there are innumerous buyers for a single good.

it is not oligopoly for the same reason.

it is not monopolistic competition as we are dealing and talking about identical goods and infinite marker buyers and sellers.