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For a business, diseconomies of scale occur when
A. the gains from the division of labor are exhausted
B. the market for the firm's product becomes saturated
C. all available economies of scale have been exhausted
D. difficulties in managing a large firm lead to rising long run average costs
Answer: D
NEW QUESTION: 2
Indigo Health Plan advertised a specific individual health insurance policy through a direct mail advertisement that provided detailed information about the product. In order to comply with the NAIC Model Rules Governing Advertisements of Accident and Sickness Insurance, Indigo must disclose whether the advertised policy contains any exceptions, reductions, or limitations. Thus, Indigo disclosed in the advertisement that one policy provision limits coverage for dental exams to $50 per exam and to one exam per calendar year. This information indicates that, with respect to the definitions in the NAIC Model Rules, Indigo's advertisement is an example of an
A. Invitation to inquire, and it discloses a policy provision known as a reduction
B. Invitation to contract, and it discloses a policy provision known as a reduction
C. Invitation to inquire, and it discloses a policy provision known as an exception
D. Invitation to contract, and it discloses a policy provision known as an exception
Answer: B
NEW QUESTION: 3
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A. overtime rates
B. holiday rates
C. contract rates
D. standard rates
E. outside rates
Answer: D,E
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