Advantages of the Direct Response System for Marketing Life Insurance

question 11

Multiple Choice

Advantages of the direct response system for marketing life insurance include which of the following?
I.Advertising can be specifically directed to selected markets.
II.Complex products can be easily sold.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Monopolistic Competitor

A firm operating in a monopolistic competition market, offering a unique product but competing with several other firms in terms of price, quality, and branding.

Elastic Demand Curve

A representation of the demand for goods or services that are very sensitive to changes in price, indicating that a small change in price leads to a large change in quantity demanded.

ATC Curve

A graph that represents the average total cost of production at different levels of output, typically U-shaped due to economies and diseconomies of scale.

Monopolistic Competitor

A monopolistic competitor refers to a market structure where many firms sell products that are similar but not identical, allowing for product differentiation and some price control.