Microeconomics:
Microeconomics:
4th Edition
ISBN: 9781464143878
Author: Paul Krugman
Publisher: Worth Publishers
Question
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Chapter 16, Problem 8P
To determine

  1. EAuction and EMarket place are two competing internet sites where goods are being sold or bought. EAuction has decided to reduce the fee for new sellers. Is it a good strategy?
  2. EMarket place has complained about anti competitive practices of EAuction to Justice department? what should be their response?
  3. EAuction stopped the practice of eliminated fees but provide better technological services and become monopolist. Should the justice department interrupt to divide EAuction into two companies?
  4. EAuction is monopolist and has its own payment site PayForIt. So it don’t allow users to use any other payment site .should justice department intervene? Explain.

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