Which of the following is a characteristic of the 'Platform Economy'?
A. Only government-provided services
B. Digital platforms that intermediate between groups of users and often exhibit strong network effects
C. Only agricultural markets
D. Only traditional brick-and-mortar retail
Answer: Option B
Solution (By JKSSB Mock Tests)
The platform economy consists of digital multi-sided platforms that facilitate interactions and transactions between different groups of users (e.g., buyers and sellers, drivers and riders) and typically display network externalities.
In the context of public goods, the 'Lindahl Equilibrium' is characterised by:
A.Personalised prices (Lindahl taxes) such that each individual demands the same quantity of the public good and the sum of prices equals marginal cost
Explanation:
In a Lindahl equilibrium each individual faces a personalised price for the public good equal to his or her marginal benefit; the sum of these prices equals marginal cost and all individuals agree on the quantity.
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