How does Ebay differ from an economist's view of a perfect competitive market?
A)Ebay has few buyers whereas perfect competitive industry assumes many buyers
B)Ebay has few sellers whereas perfect competitive industry assumes many sellers
C)There is limited information in ebay whereas perfect competitive industry assumes full information for both buyers and sellers
D)There is no difference between these two markets.

Question

Quizplus · Accepted Answer

In a perfect competitive market, full information is assumed to be available to both buyers and sellers. However, in Ebay, there is limited information available to both buyers and sellers, which means it does not meet the criteria of a perfect competitive market. Additionally, Ebay has both many buyers and many sellers, so option A and B are incorrect. There is a difference between Ebay and a perfect competitive market, so option D is also incorrect.

How Does Ebay Differ from an Economist's View of a Perfect