Why Does Amazon

question 6

Multiple Choice

Why does Amazon.com need to worry about competitors in online shopping?

• A)E-commerce is affected by the law of diminishing returns.
• B)Internet technologies are universal,and therefore usable by all companies.
• C)Internet shopping produces cost transparency.
• D)The Internet enables the production or sales of substitute products or services.
• E)The Internet increases switching costs.

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Definitions:

U.S. Company

A corporation or business entity that is registered and operates within the United States.

Japanese Yen

Japanese Yen (JPY) is the official currency of Japan, symbolized by ¥ or as JPY in foreign exchange markets.

Merchandise Valued

The total worth of goods held by a company for sale, often assessed at the end of an accounting period.

South African Firm

A company or business entity registered and operating within South Africa, subject to its legal and regulatory framework.