When economies of scale are present, the LRAC curve touches each short-run ATC curve
A) to the left of the ATC curve's minimum point.
B) to the right of the ATC curve's minimum point.
C) at the ATC curve's minimum point.
D) at no points.
Question 2
In an ad for insurance, the text reads Life's an adventure, and there are plenty of perils awaiting your jewelry: a lost or broken stone, theft, accidental loss, damage, mysterious disappearance Have you thought about insurance?
What is the economic reasoning for an individual to buy insurance?
A) Individuals who buy insurance are profit maximizers.
B) Individuals who buy insurance are rational.
C) Individuals who buy insurance are dishonest and can profit from dishonesty.
D) Individuals who buy insurance increase their expected utility by owning insurance.
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Answer the following short answer, please show your steps and include the formulas used
Construct a Lorenz curve that shows income distribution in this society.
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