Due to Its Universality, the Internet Reduces Barriers to Competition

question 28

Essay

Due to its universality, the internet reduces barriers to competition created by space, time, and information asymmetries. Explain.

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Definitions:

Inverted-U Theory

A hypothesis that suggests there is a relationship between the level of some activity and the effect it has on performance, which looks like an inverted U, indicating optimal performance at an intermediate level of the activity.

Technologically Progressive

Pertaining to the consistent application and incorporation of new technologies to improve processes, products, or services.

Perfectly Elastic

Describes a situation where the quantity demanded or supplied responds infinitely to changes in price.

Expected Rates

Predicted percentages or values in various contexts, such as interest rates, growth rates, or return on investment.