A Building Owned by X Company Is Insured for $100,000

question 7

Multiple Choice

A building owned by X Company is insured for $100,000 but the insurance contract contains an 80% co- insurance clause. The building is damaged by fire to the amount of $20,000. The depreciated replacement value of the insured property is $250,000. The insurance company will then pay

• A) $5,000.
• B) $15,000.
• C) $8,000.
• D) $10,000.
• E) $20,000.

Understand the relationship between economies of scale and natural monopolies.

Analyze the significance of patents and government franchises in maintaining monopolies.

Distinguish between the profit-maximizing strategies of monopolies and competitive firms.

Comprehend the concept of economic profit and how it differs for monopolies compared to competitive industries.

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Definitions:

Variable-Interval

In the context of operant conditioning, a schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed.

Instrumental Learning

A type of learning where a behavior is strengthened or weakened, depending on the behavior's consequences, also known as operant conditioning.

Associative Learning

Learning that occurs when a connection is made between two stimuli, or between a stimulus and a response.

Reward or Punishment

Reward or Punishment encompasses the methods used in behavioral psychology to encourage or discourage certain actions or behaviors through the application of positive or negative consequences.