1. According to the OECD Glossary of Statistical Terms, is defined by the following conditions: large number of buyers and sellers, there are low barriers to entry or exit the market, all buyers and sellers must have complete access to relevant knowledge, and the product should be homogenous (OECD, 2003). In order for a market to be considered perfectly competitive, all these conditions must be met.
             In the case of eBay, the first condition listed above is met, since the online auction site is used by many sellers that auction their items, which include almost any category of goods except for goods prohibited by law, like: tobacco, alcohol, a series of textbooks, lottery tickets, and others. A large number of buyers respond to such a variety of offers.
             Regarding the condition requires for homogenous products, the eBay market is quite similar to any traditional market. The condition regarding entry barriers is more complicated since eBay charges a large number of fees applied to buyers. For example, eBay charges fees to list a product, fees when the product sells, and a series of optional fees. These fees are established for each product in accordance with certain factors of influence.
             Regarding the complete access to relevant Knowledge, in eBay's case, buyers and sellers benefit from this condition. Sellers are informed of all the fees they will be charged, prior to their auctioning of selected items. All buyers receive the same information on the goods they are interested in purchasing and on the auction types. eBay meets all the conditions required by a perfectly competitive market. However, some of the conditions can be improved. For example, the entry barrier system for eBay could be simplified.
             2. The merger between Sprint Corporation and Nextel Communications took place in 2005, forming the new Sprint Nextel Corporation. For tax purposes, the merger was treated as a purchase, Sprint Corporation being the buyer, although...