Economics term paper help?

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soccerkidlot

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1. Perfectly competitive markets are characterized by perfect information. The internet provides much more information than shoppers ever had before. What effect does this have on prices? On firms' profits? On the number of firms operating in the market?
 
Internet does not provide perfect information. If it did, you still would not be able to get perfect price. Nothing is perfect in Economics. If Economist was a doctor he would be sued for malpractice - Ben B. said that. "it is not exact science". However, with more information - you should be able to see lower prices. Many companies will undercut their potential profits, increases # of firms.

Think of selling stuff on ebay/craiglist... -- but keep in mind that not all products are homogeneous - a car for example, can be at different conditions
 
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