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Checkpoint quiz · Technology & the Digital Economy

Technology & the Digital Economy: Checkpoint 2

Covers platform monopolies and antitrust, the subscription economy, two-sided markets, startup growth strategy, and app store platform fees.

Five questions on lessons five through nine: antitrust and platform monopolies, subscriptions, two-sided markets, startup growth strategy, and app store fees.

Question 1 of 5 What does antitrust law primarily try to address in digital markets?

Punishing companies simply for becoming large The use of dominant market power to unfairly block or harm competition Requiring all apps to be free Setting the price of every online product

Being big isn't illegal on its own - antitrust concerns focus on specific conduct that uses dominance to unfairly disadvantage competitors.

Question 2 of 5 In the subscription economy, what does 'churn' measure?

How quickly a company's revenue grows The rate at which subscribers cancel over a given period The number of new features released each month The total number of employees at a company

Question 3 of 5 In a two-sided market, why is one side sometimes offered a free or heavily subsidized price?

Because that side is legally required to be free Because attracting that side is often what makes the platform valuable enough for the other side to pay Because that side never generates any value for the platform Because it lowers the platform's total costs to zero

Question 4 of 5 Why do many venture-backed tech startups prioritize growth over early profit?

Investors are legally required to demand growth Investors are often betting on eventual market dominance rather than steady early profit Profit is impossible in the tech industry Growth always guarantees profitability later

Question 5 of 5 Why can a dominant app store charge a platform fee that isn't strongly limited by competition?

Because developers are required by law to pay it Because it may be the only realistic pathway for developers to reach a phone's users Because app stores have no real costs to cover Because users pay the fee directly instead of developers

When a phone only allows one official app store, that store becomes a gatekeeper rather than one option among many competitors.

← Back to The Economics of App Stores and Platform Fees Next lesson → Digital Piracy and Intellectual Property Economics

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