Why Amazon is Begging For Regulations: The Twisted Economics of Amazon

Amazon has evolved from an online bookstore to a global conglomerate, influencing various industries. Its unique business model focuses on breaking into new markets, often prioritizing growth over profits. Amazon's strategies include leveraging profitable sectors to support new ventures and maintaining a monopsony in consumer goods. The company has also impacted investment trends, promoting a growth-at-all-costs mindset. Despite criticisms, Amazon continues to shape the future of retail, investing, and business practices.

What was Amazon's initial business model when it first started?

• Gaming platform

• Grocery delivery

• Online streaming service

• Online bookstore

How does Amazon manage to enter markets with high barriers to entry?

• By acquiring smaller companies

• By leveraging its existing infrastructure

• By reinvesting profits from other parts of the business

• By focusing solely on profits

What is the primary difference between a monopoly and a monopsony?

• A monopoly controls sales, while a monopsony controls purchases

• A monopsony controls sales, while a monopoly controls purchases

• Both control sales and purchases equally

• Neither controls sales or purchases

What is a key feature of Amazon's business model that allows it to avoid being a monopoly?

• Diversifying into multiple industries

• Avoiding competition

• Reducing prices

• Focusing on a single market

What is the potential impact of Amazon's monopsony strategy on suppliers?

• Higher prices for consumers

• Reduced bargaining power for suppliers

• Increased competition among suppliers

• More options for consumers

Which of the following companies is NOT mentioned as being influenced by Amazon's growth model?

• Google

• Snapchat

• Lyft

• Wework

What is a potential risk of the 'growth at all costs' model?

• Higher taxes

• Lack of profitability

• Decreased market share

• Increased competition

How does Amazon's approach to profits differ from traditional businesses?

• It focuses on immediate profits

• It reinvests profits into new ventures

• It distributes profits as dividends

• It avoids reinvestment

Why did Amazon raise its minimum wage to $15 an hour?

• To attract more employees

• To comply with government regulations

• To improve public perception and outpace competitors

• To reduce operational costs

What is Amazon's strategy in lobbying for a national minimum wage increase?

• To gain government subsidies

• To increase its own labor costs

• To level the playing field with competitors

• To reduce its workforce