« previous next »

Author Question: What would be an example of economies of scope achieved in the automobile insurance industry? ... (Read 64 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?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

An example of sodium balance achieved by the coordinated actions of three hormones. An example of sodium balance achieved by the coordinated actions of three hormones.
Results from sequential study of two cohorts tested at three ages and at three different points in t Results from sequential study of two cohorts tested at three ages and at three different points in t
A passenger train crosses Stony Creek Bridge in the Rocky Mountains in 1878. Railroads were importan A passenger train crosses Stony Creek Bridge in the Rocky Mountains in 1878. Railroads were importan
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 dual-trace scope pattern showing both the power and the waste spark from the same coil ... A dual-trace scope pattern showing both the power and the waste spark from the same coil ...
Growth in Open Economies Growth in Open Economies
Video: Anatomy and Chemical Makeup of a Single Hair (Animation)

For a complete list of videos, visit our video library