In Some Industries, Like Insurance, Both Small and Very Large

question 63

Multiple Choice

In some industries, like insurance, both small and very large firms coexist and compete quite effectively in the market. This indicates that the long-run average total cost curve in these industries

• A) is "U" shaped.
• B) is downward sloping over all levels of output.
• C) exhibits constant returns to scale over a wide range of output.
• D) exhibits diseconomies of scale beginning at a low rate of output.

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Definitions:

Social System

A structure of social relationships and roles that shapes collective behavior and organization.

Performance Norm

Standardized expectations regarding the level of work performance and productivity accepted and upheld by a group or organization.

Work Effort

The amount of physical or mental energy utilized towards accomplishing a task or objective within a workplace setting.

Team Members

Individuals who are part of a group working together towards a common goal or project, each contributing with their specific roles and responsibilities.