A Delivery Company Lowers Its Automobile Insurance Costs as It

question 205

Multiple Choice

A delivery company lowers its automobile insurance costs as it increases in size because as the size of the fleet of delivery trucks increases, the premium per driver decreases substantially. This is an example of

• A) constant returns to scale.
• B) diseconomies of scale.
• C) economies of scale.
• D) diminishing marginal returns.

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Definitions:

Unionized Firms

Companies or organizations where a majority of the workforce is a member of a union, which represents the employees in negotiations with the employer about wages, working conditions, and other employment terms.

Labor Unions

Organizations formed by workers to protect their rights and interests, often engaging in negotiations with employers over wages, benefits, and working conditions.

Human Resource Strategy

The strategic framework that outlines how an organization intends to manage and develop its workforce to achieve its business objectives.

Social Issues

Collective concerns or problems within society that are perceived by significant numbers of people as being undesirable and requiring remediation or intervention.