« previous next »

Author Question: What would be an example of economies of scope achieved in the automobile insurance industry? ... (Read 68 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?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

The top five reasons that children stay home from school are as follows: colds, stomach flu (gastroenteritis), ear infection (otitis media), pink eye (conjunctivitis), and sore throat.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Kranz and Lörz first achieved in vitro plant fertilization Kranz and Lörz first achieved in vitro plant fertilization
These monolithic figures from Easter Island suggest the contemplative nature of philosophy, which ca These monolithic figures from Easter Island suggest the contemplative nature of philosophy, which ca
A scope display showing a normal Chevrolet Equinox MAF sensor at idle speed. the frequency is 2,600 ... A scope display showing a normal Chevrolet Equinox MAF sensor at idle speed. the frequency is 2,600 ...
Natural Resources and Industry Natural Resources and Industry
Post-Communist Economies Post-Communist Economies
In a simulation, the path of a new aircraft after it has achieved weightlessness In a simulation, the path of a new aircraft after it has achieved weightlessness
Video: Chloroplast Structure & Light Dependent Reactions (Photosystem 1 and 2 Cyclic Electron Flow)

For a complete list of videos, visit our video library