Rearrange the following sentences to form a coherent paragraph:
1. This phenomenon is often referred to as a "network effect," where the value of a service increases with the number of its users.
2. Consequently, they tend to dominate their respective markets, leading to the creation of powerful monopolies or oligopolies.
3. The digital economy has given rise to new business models that rely on the accumulation of data and the scale of their user base.
4. A prime example is the platform economy, where companies like social media networks and ride-sharing apps create value by connecting users.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 3, 4, 1, 2.
Grammatical Concept/Meaning:
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Sentence 3 (The Opening): This provides the broad context. It introduces the "digital economy" and the "accumulation of data/user base" as the foundational elements of new business models.
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Sentence 4 (The Example): This sentence begins with "A prime example...," which directly illustrates the "new business models" mentioned in sentence 3. It names specific industries like social media and ride-sharing.
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Sentence 1 (The Definition): The phrase "This phenomenon" refers back to the value creation through connecting users described in sentence 4. it introduces and defines the technical term "network effect."
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Sentence 2 (The Consequence): The transition word "Consequently" signals the final result of the network effect. Because the value increases with more users, these companies naturally become "monopolies or oligopolies."
Final Passage:
3. The digital economy has given rise to new business models that rely on the accumulation of data and the scale of their user base.
4. A prime example is the platform economy, where companies like social media networks and ride-sharing apps create value by connecting users.
1. This phenomenon is often referred to as a "network effect," where the value of a service increases with the number of its users.
2. Consequently, they tend to dominate their respective markets, leading to the creation of powerful monopolies or oligopolies.
Hence, the chosen sequence is correct.