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E-Commerce: A Modern Form of Perfect Competition or Not
E-Commerce: A Modern Form of Perfect Competition or Not
E-Commerce
Electronic commerce, commonly known as e-commerce, ecommerce, refers to the buying and selling products or services over electronic systems such as the internet and other computer networks.
Growth Prospect
40 35 30 25 20 15 10 5 0 Broadcast Radio Broadcast TV Personal Computers Commercial Internet Series3 Series2 Series1
Feature
Large number of firms making both B2B ad B2C business. (many buyers and sellers) Perfect Knowledge. Freedom of Entry. Identical products. No transportation Cost.
Conditions to maximize profit: MR=MC MC > MR after reaching the above condition
Limitations
Kills the pleasure of shopping Customers not able to check goods physically May reduce production cost but carriage charges high. Connection problems No assurance of delivery Big companies do not like e commerce markets to take their share
Why internet market is better for replacement buy than new purchase ?
Give three examples of products that are particularly suitable for selling over the Internet and Three that are not.
SOFTWARE
TICKETS
FOOD
ELECTRICAL GOODS
Thank You