These Economics W.I.R.E.D. activities recommend web links that relate to key concepts of each chapter of the textbook. For each link, there are instructions to guide you to specific information, followed by several discussion questions or exercises.

Key Concepts: A Look at Different Industries, The Long-Run Competitive Equilibrium Model of an Industry, Case Study: How Does the Model Explain the Facts?, Minimum Costs per Unit and the Efficient Allocation of Capital, External Economies and Diseconomies of Scale

Amazon.com & E*TRADE—New Economy Business Models

Explore the services offered by the selected "new economy" businesses:Amazon.com and E*TRADE.

• Describe how new technology such as the Internet enables "new economy" businesses to emerge and challenge the existing businesses (e.g. Amazon.com vs. Borders and E*TRADE vs. Merrill Lynch).
• Which "new economy" attributes convinced a large number of investors that "new economy" businesses would generate a higher level of profit than traditional or "old economy" businesses?
• Visit ebay.com. Explain why eBay enjoys the benefits of positive network feedback or externalities.