« previous next »

Author Question: What would be an example of economies of scope achieved in the automobile insurance industry? ... (Read 30 times)

xclash

  • Hero Member
  • *****
  • Posts: 681
on: Jun 29, 2018
What would be an example of economies of scope achieved in the automobile insurance industry?
 
  What will be an ideal response?

Question 2

Monopolists are able to price discriminate because
 
  A) of differing willingness to pay among consumers.
  B) of differing price elasticities of supply.
  C) they have constant marginal cost.
  D) they have constant average cost.


joechoochoy

  • Sr. Member
  • ****
  • Posts: 306
Reply #1 on: Jun 29, 2018
Answer to Question 1

The auto insurance industry can achieve economies of scope, for example, by also offering to insure homes, boats, and people's lives. There could be cost savings, compared to selling each kind of insurance by different specialized companies, because one sales force can sell all kinds of policies. Also, there would not have to be multiple buildings for the headquarters and branch offices, computer networks, or cars for the sales agents.

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

Lower drug doses for elderly patients should be used first, with titrations of the dose as tolerated to prevent unwanted drug-related pharmacodynamic effects.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Types of Health Insurance Service Coverage Types of Health Insurance Service Coverage
The impact of industry and manufacturing on our life The impact of industry and manufacturing on our life
The growth of GHG emissions is greatest in the rapidly growing economies of India and China The growth of GHG emissions is greatest in the rapidly growing economies of India and China
Growth in Closed Economies Growth in Closed Economies
Growth in Open Economies Growth in Open Economies
An automobile engine generates 2160 Joules of heat that must be carried away by An automobile engine generates 2160 Joules of heat that must be carried away by
Video: Kinetic parameters & Kinetic experiment

For a complete list of videos, visit our video library