In the context of digital platforms, 'Network Effects' imply that:
A. Only offline networks matter
B. The value of the platform falls with more users
C. The value of the platform to each user rises with the number of other users
D. Network size is irrelevant
Answer: Option C
Solution (By JKSSB Mock Tests)
Network effects (or network externalities) exist when the utility a user derives from a platform increases with the number of other users on the same side or the opposite side of the market.
Explanation:
Consumer sovereignty means that in a market economy, consumers, through their spending decisions, ultimately determine what goods and services are produced.
Explanation:
Fiscal dominance occurs when the fiscal authority’s need to finance deficits constrains or dictates the behaviour of the monetary authority, often leading to inflationary monetisation.
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