« previous next »

Author Question: What would be an example of economies of scope achieved in the automobile insurance industry? ... (Read 69 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?

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?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

Colchicine is a highly poisonous alkaloid originally extracted from a type of saffron plant that is used mainly to treat gout.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Nanomaterials Applications and Industry Used Nanomaterials Applications and Industry Used
How to avoid car insurance claims How to avoid car insurance claims
Raster is the best scope position to view the spark lines of all the cylinders to check for ... Raster is the best scope position to view the spark lines of all the cylinders to check for ...
Natural Resources and Industry Natural Resources and Industry
Post-Communist Economies Post-Communist Economies
Wages and Machines in the Textile Industry, 1910 Wages and Machines in the Textile Industry, 1910
Video: Hormonal regulation of pregnancy - weeks 17 through 38

For a complete list of videos, visit our video library