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:

Equilibrium System

A system in which dynamic processes occur at equal rates in opposite directions, establishing a stable condition that does not change over time.

Activation Energy

The smallest quantity of energy necessary to start a chemical reaction.

Equilibrium

A state in a chemical reaction where the rates of the forward and reverse reactions are equal, leading to no overall change in the concentration of reactants and products.

Catalyst

A substance that increases the rate of a chemical reaction without being consumed or permanently altered in the process.