Auction or dynamic-pricing market is an example of ________.

Question

UnlockIAS · Accepted Answer

Correct — A (B2B Commerce) or C (C2C Commerce), both accepted. Auction/dynamic-pricing structures appear genuinely in both models: in B2B, businesses use online procurement/industrial exchanges where prices are set through bidding or reverse auctions between businesses; in C2C, individual consumers trade directly with each other through auction marketplaces (the classic example being eBay-style peer-to-peer auction sites) where price is set by bidding rather than a fixed tag. Because auction/dynamic pricing is a real feature of both models, MPPSC's key credited both A and C.

Why the other options are wrong — (b) C2B is where an individual consumer initiates a transaction toward a business (e.g., offering to sell a service, or naming a price for a business to accept/reject) — its defining feature is who initiates the deal, not an open auction/bidding mechanism.  (d) Wrong — auction/dynamic-pricing markets are a well-established feature of both B2B exchanges and C2C marketplaces, so this option is incorrect.

Concept: E-commerce transactions are classified by who is buying and who is selling: B2B (business-to-business), B2C (business-to-consumer), C2B (consumer-to-business) and C2C (consumer-to-consumer). Pricing mechanism is a separate axis from this classification — a fixed-price catalogue and an auction/dynamic-pricing market can both exist within the same B2B or C2C category. Auction/dynamic pricing simply means the price is discovered through bidding or real-time supply-demand adjustment rather than being fixed by the seller in advance.

State PCS 2021 Q27 — Science & Technology PYQ with Answer

State PCS 2021 Q27 — Science & Technology PYQ with Answer