The No-Frills Service That’s Delivering More and More Packages

The growth of the e-commerce giants like Shein, Amazon, Temu, and TikTok and a large number of smaller firms has spawned a new U.S. delivery service called SpeedX. Parcel carriers FedEx and UPS provide reliable fast shipping and tracking, while SpeedX provides low-cost service that can leave some customers guessing.- Wall Street Journal, December 2, 2024

Answer the following questions to check your understanding of the story.

1) What type of market is parcel delivery? What type of market is e-commerce?

a) Perfect competition; monopoly

b) Monopolistic competition; oligopoly

c) Monopoly; perfect competition

d) Oligopoly with product differentiation; monopolistic competition

2) Why did SpeedX enter the market for parcel delivery?

SpeedX entered the parcel market because they can offer a low-price low-cost service with _____________.

a) the price greater than average total cost

b) marginal revenue greater than average total cost

c) marginal revenue greater than marginal cost

d) the price greater than average variable cost

The No-Frills Service That’s Delivering More and More Packages

Like this:

Leave a ReplyCancel reply

Share this:

Like this:

Leave a ReplyCancel reply

Discover more from Econ Eye