The role of platform firms is to
A) reduce the amount of market competition among sellers.
B) lower transaction costs for buyers and sellers.
C) reduce the level of voluntary exchanges in markets.
D) reduce the amount of information in the price system.

Question

Quizplus · Accepted Answer

The role of platform firms is to lower transaction costs for buyers and sellers. By providing a centralized platform for buyers and sellers to connect and exchange goods or services, platform firms eliminate the need for individual buyers and sellers to find each other and negotiate terms. This increases efficiency and reduces transaction costs, leading to more voluntary exchanges in the market.

The Role of Platform Firms Is to