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:

Number and Arrangement

The term refers to the specific order and configuration in which components are placed or organized within a system or structure.

Complexity

A measure of how intricate, detailed, or complicated an object, system, or process is.

ADDA

American Design Drafting Association, an organization that supports professionals in the drafting and design industry.

Reference Dimension

A measurement provided on a drawing or in a set of specifications for informational purposes only, not subject to inspection.