Question

Discuss how the development of the Internet has changed the market structure in which companies operate. Remember that, for purposes of this class, we are assuming most firms can be categorized as being in perfect competition, monopolistic competition, oligopoly, or monopoly. Keep in mind, however, that perfect competition exists mostly as an ideal or benchmark, i.e. it is rarely if ever seen in the 'real world.'

Use the material in our text to support your views. Remember to use the criteria by which we categorize firms, e.g.   the number of firms in a market, degree of competition, amount of market information available to both sellers and buyers, etc.

Lastly, see if you can use our managerial economic material to measure the impact of the Internet on market structure.

Answer 1