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What market structure does Amazon operate in? Why? Analyze the characteristics of this market. Note: Please...

What market structure does Amazon operate in? Why? Analyze the characteristics of this market.

Note: Please also include your sources . Thank You.

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Answer #1

Answer - Amazon operates in the monopolistic market structure. It has many competitors such as the Flipkart , Shopclues etc and there is no restriction on the entry of the new firms. The price of the products differ upon Amazon and other sites based on quality , brand etc .

The dree entry and exit , many buyers and sellers , product differentiation , price discrimination are all the common characteristics which are present in this market structure and are also exhibited by Amazon.

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