Which of the Following Statements Concerning the Coverage of Collapse

question 42

Multiple Choice

Which of the following statements concerning the coverage of collapse of the dwelling under an unendorsed Homeowners 3 policy is true?

• A)There is no coverage for collapse,regardless of the cause of the collapse.
• B)Collapse is covered if it is caused by one of the Coverage C perils.
• C)If collapse is caused by an earthquake,the loss is covered.
• D)There is no coverage for collapse unless the proper endorsement is added to the policy.

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Definitions:

Total Costs

The total of all costs associated with the creation of goods or services, which encompasses both constant and fluctuating expenses.

Marginal Cost

The change in total cost that results from producing one additional unit of a good or service, a key concept in economic decision-making and pricing strategies.

Average Cost

The total cost divided by the number of goods produced, also known as cost per unit.

Total-Cost Curve

A graph that shows the relationship between the total cost incurred by a firm and the level of output produced.