AmazonCom Is an Example of A(n)________ Because It Sells Directly

question 60

Essay

Amazon.com is an example of a(n)________ because it sells directly to consumers over the Internet without maintaining a physical sales channel.

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Definitions:

Efficiency Gains

Improvements in the use of resources that allow for more output without increasing the input.

Natural Monopoly

A market condition in which a single firm can provide a product or service at a lower cost than any potential competitors, often due to economies of scale.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of the operation increases.