depends on whether the gain from extra product variety offsets the selling costs and the extra cost that arises from excess capacity. is as clear-cut as the efficiency of perfect competition. is equal to that of monopoly. is eliminated in the long run. comes from its excess capacity.

Amazon inc. does not currently pay a dividend. analysts expect amazon to commence paying annual dividends in three years. the first dividend is expected to be $2 per share. dividends are expected to grow from that point at an annual rate of 4% in perpetuity. investors expect a 12% return from the stock. what should the price of the stock be today?