Question

Part 1:

Amazon is one of the largest retailers but the company has grown to include grocery services, pharmacy, cloud services, entertainment content, eBooks and home assistants. Amazon's growing market power is of concern but are they a monopoly?

Questions to consider in your analysis:

• Is Amazon a monopoly?
• If yes, which characteristics of a monopoly does Amazon exhibit?
• If no, does Amazon have monopoly power and the potential to become a monopoly?

Part 2:

Elizabeth Warren has proposed a plan to break up big tech companies like Amazon, Google, Facebook, etc.

• Do you agree or disagree that big tech companies should be broken up? Explain. Use economic theory to support your argument.
• Using the economic theory you learned in the chapter 11, does Warren have a strong antitrust case to use against the big tech companies such as Facebook?

Hello,

I need help with this assignment, and I don't know if it'sallow for u or not but provide the 3 citations too, if you cannot then just answer the questions without the citations.

Thank you

Answer 1

Amazon is not a monopoly,we can say that it is an oligopoly firm as there are only few seller in such business.I don't see amazon becoming monopoly . they ere even now facing tough competition from rival firms in every market whether it is cloud , e-commerce .competitor  such as microsoft is challenging in cloud,  walmart not a big competitor but with the deal with flipkart will be threat to them and alibaba also.

I don't agree with queen if we break up big tech firm like google,amazon it will create chaos in the market or even it will discourage trade between countries.the big economic problem which will arise due to this is inefficiency in the market or with even discourage others to operate such big firms like them. No, the case is not strong enough.