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The major market forms are:A) Perfect competition, in which the market consists of a very large number of firms producing a homogeneous product. Ebay contributes to it and drives prices down.
B) Monopolistic competition, also called competitive market, where there are a large number of independent firms which have a very small proportion of the market share. Ebay helps this by providing another avenue for distribting goods at the lowest market rate for consumers.
C) Oligopoly, in which a market is dominated by a small number of firms which own more than 40% of the market share. Ebay reselelrs of used goods may hurt the magor firms as they tend to offer lower prices.
D) Oligopsony, a market dominated by many sellers and a few buyers. Ebay doesn%26#039;t really affect, although it makes the number of sellers transparant and allows all to see market prices.
E) Monopoly, where there is only one provider of a product or service. Ebay resellers of used can affect new prices as it is more of a competitive market. Keep in mind thoguh, everything was bought new at the monopoly price so used prices for the goods should be higher on average as well.
F) Natural monopoly, a monopoly in which economies of scale cause efficiency to increase continuously with the size of the firm. Ebay won%26#039;t have these sellders in the market except as those getting rifd of used and excess inventory.
G) Monopsony, when there is only one buyer in a market. Not realistic for Ebay which is characterized by many sellers and many buyers. 100% 4 Votes
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