The main function of a platform firm is to
A) deal with the government on behalf of sellers.
B) link producers with consumers.
C) perform collective bargaining with sellers on behalf of buyers.
D) create entry barriers for an industry on behalf of existing firms.

Question

Quizplus · Accepted Answer

The main function of a platform firm is to act as an intermediary that connects producers (sellers) with consumers (buyers), typically using digital technology. The platform provides a convenient and efficient way for sellers to offer their products or services to a large audience, while consumers can easily find and buy what they need. Examples of platform firms include Amazon, Uber, Airbnb, and Alibaba. The other options - dealing with government, collective bargaining, and creating entry barriers - are not typically the main functions of a platform firm.

The Main Function of a Platform Firm Is to