Question

Google started as one of many internet search engines, Amazon started as an online book seller, and eBay began as a site where people could sell used personal items in auctions. These firms have grown to be so large and dominant that they are facing antitrust scrutiny from competition regulators in the US and elsewhere. Did these online giants grow by fairly beating competition, or did they use unfair advantages? Are there any clouds on the horizon for these firms -- could they face diseconomies of scale or diseconomies of scope as they continue to grow? If so, what factors may limit their continued growth?

Answer 1

All this online giants like Google, Amazon , Ebay etc grow this much big fairly by beating competition by being innovative in their field. These giants tried to be innovative in their fields along with providing excellent service to their customers. So all this firms reached this position with their own hard work.

Yes all this firms will face dis economics of sales as now they reached a level where they cant go beyond that level hence they will not have any positive economic of sales but only dis economics of sales. The main reason is that people have expectations of them so to reach those expectations they should have more man power and technology. Hence even if the costs are high for them they have to use man power and new technology.

Any business if reaches certain position they can't go further as seeing the success of this firms everyone will follow them by creating competition which leads to more competitors in same industry.