Which of the Following Statements About the Businessowners Policy Is

question 25

Multiple Choice

Which of the following statements about the businessowners policy is (are) true?
I.It is designed to meet the insurance needs of large manufacturing firms.
II.It is a package policy designed to meet the basic property and liability needs of an insured in a single contract.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Payoff Matrix

A table that shows the payoffs for each player in a game for every possible combination of actions by the players.

Economic Profits

The financial gain achieved when revenues exceed both explicit and implicit costs.

Oligopoly Model

A market structure characterized by a few firms dominating the market, leading to strategic interactions in pricing and production.

Cournot

Refers to a model of duopoly competition in which companies choose quantity to produce independently, influencing the market price.