As we all know that Amazon is a E-commerce company where it is satisfying the needs and wants of so many people.Here are some economic concepts where we can relate with AMAZON.
ECONOMIES OF SCOPE:
Amazon offering multiple goods like home utensils,kids toys,dresses,footwear,books etc where products are sharing one particular platform for promotion of the products which helps people who are shopping online lead to cost and time savings for them.
OLIGOPOLY:
Amazon is a oligopoly market where it is having few sellers and selling the homogeneous or differentiated products.In oligopoly market few sellers dominate the market and they are having control over the price of the product.
RATIONAL PEOPLE THINK AT THE MARGIN:
Mostly people used to search 3-4 websites when they want to buy a particular product.Whenever they spot the comparison for that product in those websites usually people prefer the less price for such a product.Whenever they got the product with less price in Amazon people usually go for it.This satisfies "Rational People Think at the Margin".
UTILITY:
When I purchased a particular home decor thing from a online website i.e. Amazon.After receiving the product the satisfaction which I got while using those product is called "Utility".
ECONOMIES OF AGGLOMERATION:
Amazon is a E-commerce site where it helps the customer to meet his/her expectation of products at one place where Amazon is having multiple elements in it.
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