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.

---

Definitions:

Civil Law

The body of laws that govern the rights and responsibilities either between persons or between persons and their government.

Rights Violated

Instances where an individual's legally protected freedoms or entitlements are infringed upon.

Criminal Law

The body of law that relates to crime and prescribes conduct perceived as threatening, harmful, or otherwise endangering to the property, health, safety, and moral welfare of people.

Securities And Exchange Commission

A U.S. government agency responsible for enforcing federal securities laws and regulating the securities industry.