Author Question: When long-run average costs decrease as output increases, there are A) economies of scale. B) ... (Read 61 times)

Kikoku

  • Hero Member
  • *****
  • Posts: 540
When long-run average costs decrease as output increases, there are
 
  A) economies of scale.
  B) diseconomies of scale.
  C) constant returns to scale.
  D) constant marginal costs.

Question 2

Pirates have been intensely attacking ships off the shore of Somalia this year. Boat owners have reportedly coughed up more than 30 million in ransom and insurance premiums have shot up. Why would insurance premiums increase dramatically?
 
  I. Because the probability of pirate attack has increased
  II. Because consumers' willingness to pay for insurance has increased because of these attacks
  III. Because insurance claims have increased
  A) I only
  B) I and III only
  C) III only
  D) I, II, and III



Liddy

  • Sr. Member
  • ****
  • Posts: 342
Answer to Question 1

A

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

For a complete list of videos, visit our video library