« previous next »

Author Question: What would be an example of economies of scope achieved in the automobile insurance industry? ... (Read 57 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 immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

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.
The Acheulean industry is typified by hand axes and cleavers. The Acheulean industry is typified by hand axes and cleavers.
The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha
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
Nanomaterials Applications and Industry Used Nanomaterials Applications and Industry Used
In the photo on the left, Henry Ford proudly displays his 1905 car, the latest in automobile ... In the photo on the left, Henry Ford proudly displays his 1905 car, the latest in automobile ...
Video: New DNA Strand Replication

For a complete list of videos, visit our video library