Which of the Following Is NOT a Disadvantage of Flexible

question 53

Multiple Choice

Which of the following is NOT a disadvantage of flexible benefit programs?

• A)Administrative burdens and expenses increase.
• B)Adverse selection of benefits by employees results in increase in costs.
• C)New benefits are more difficult to introduce.
• D)Flexible benefits are subject to nondiscrimination requirements in Section 125 of Internal Revenue Code.

---

Definitions:

Nondiscriminating Natural Monopoly

A market condition where a single firm can supply the entire market's demand for a good or service at a lower cost than any competitor, without price discrimination.

Marginal Cost

The cost of producing one additional unit of a product or service, a critical concept in economic decision-making.

Average Total Cost

The total cost of production (fixed costs plus variable costs) divided by the quantity of output produced, representing the per unit cost.

U.S. Internet Search Market

The segment of the Internet industry in the United States that involves search engines and their market dynamics, including competition and market share.