Activity: Participate in a Case Study, Managerial Problem: Amazon's Delivery Services $($P$\backslash$&B$,$pp$.191$ & $221)$ Amazon has a problem: It's too successful. It controls $44\%$ of the U$.$S$.$ e$-$commerce market, has well over $$200$ billion in annual sales, ships more than $1\mathrm{.}2$ billion packages a year, and has more than $100$ warehouses, $7,500$ truck trailers, and $40$ airplanes. However, its rapid growth has made quick and inexpensive delivery of packages crucial to its operations. In $2017,$ it spent nearly $$22$ billion on shipping globally or about $12\%$ of its overall revenue. To which market structure belong Amazon? Explain your answer. $2.$ Amazon has relied on shipping using United Parcel Service $($ UPS$),$ FedEx, and the U$.$S$.$ Postal Service $($USPS$).$ Amazon worries that these delivery services are relatively expensive and have trouble delivering on time, especially during heavy shipping near the December holidays. Consequently, Amazon says that it needs to develop its delivery services. One option Amazon is considering is Shipping With Amazon $($SWA $),$ a form of vertical integration. It requires a significant investment initially $,$ with a payoff in the future. This investment cannot pay unless its present value is positive. $3.$ Amazon's new venture requires a large, up$-$front investment that may even be large enough to cause total profits to be negative in the year the investment is made. The payoff comes in year $2$ when profits are higher than they would have been without the initiative $.$ For this case study, you can use inflows to the firm $($payoffs$)$ of $-100,000$ in year $1$of $ $100,000$ in years $2$ to $4,$ and $ $500,000$ in year $5.$