Firm: eBay

Describe the firm's customers (Households, businesses, schools, governments, etc.) To what

extent does the company depends on international customers?

What are the major determinants of demand for the firm's primary product? Explain your

choice of variables. If necessary, describe how determinants differ across customer segments.

What observable variables might this company use to detect changes in these determinants of

demand? (Observable variables are measures that can be tracked over time to detect changes

in demand conditions.)

Recall that price elasticity is a function of (1) the number of available substitutes, (2) the

price level relative to customers' budgets, (3) and the durability of the product. Describe

these factors for the firm's primary product. Based on this analysis, does the firm face elastic

or inelastic demand with regard to its primary product?

How would you describe the market structure of the industry in which your firm operates?

How much pricing power does the firm have? Are economies of scale a barrier

to entry in this industry?

Has the Department of Justice or the Federal Trade Commission (FTC) taken action recently?

against this firm? Report any major findings. (If you conclude no action has been taken,

explain your search procedure.)