The term “New Economy” refers to “activities based on knowledge and information, rather than traditional industries such as manufacturing.” (Cambridge Dictionary, 2019) Many “new economy” firms have grown to be the largest companies in the world. At least some of them are perceived as monopolies or near-monopolies.

• Provide an example of a “new economy” firm. Discuss some arguments that suggest that it is a monopoly. Present a counter-argument that suggests that it is not a monopoly.
• What is the source of the firm’s market power? If you believe the firm is a monopoly, do you expect it to be able to keep its status in the long run?
• If you don’t believe the firm is a monopoly, what market structure does it most closely fit into?