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Edbus : economics department

Edbus : economics department. Shelly Bok. Investigation on taobao service. What is the taobao service?. Provided by the Business Club Helps buy products on Taobao for people who don’t know how to use the website 10% service fee. monopoly.

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Edbus : economics department

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  1. Edbus: economics department Shelly Bok Investigation on taobao service

  2. What is the taobao service? • Provided by the Business Club • Helps buy products on Taobao for people who don’t know how to use the website • 10% service fee

  3. monopoly • Definition: the exclusive possession or control of the supply or trade in a commodity or service • Why is Taobao service a monopoly? • Though kids who CAN read Chinese may help others (who can’t read Chinese) buy the products off the website, this is not very usual (and kids do it as a favor  does not take money) • Business Club is the only “company” that provides the service.

  4. Monopoly graph • Profit-Maximization • Quantity at which MC = MR • Price at which the Q touches D = AR

  5. Abnormal profit

  6. Monopolistic competition • IF some students start helping others buy Taobao and take service fee

  7. PERFECT COMPETITION • IF EVERY student starts helping others buy Taobao and take service fee

  8. Price takers

  9. Url sources • http://www.economicshelp.org/microessays/markets/monopoly-diagram/ • http://www.bized.co.uk/sites/bized/files/images/diagrams/small/moncomp_srtolr.gif • http://upload.wikimedia.org/wikipedia/commons/thumb/4/43/Economics_Perfect_competition.svg/560px-Economics_Perfect_competition.svg.png • http://www.economicshelp.org/wp-content/uploads/blog-uploads/2008/01/perfect-competition1.jpg

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