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For a business, diseconomies of scale occur when
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D. the market for the firm's product becomes saturated
Answer: A
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
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C. Invitation to contract, and it discloses a policy provision known as a reduction
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E. holiday rates
Answer: B,C
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