Which of the Following Statements About the Continuation of Group

question 3

Multiple Choice

Which of the following statements about the continuation of group health insurance under the COBRA law is true?

• A)A continuation of coverage must be made available even if an employee voluntarily terminates employment.
• B)The length of the continuation of coverage is 90 days.
• C)The option to continue coverage applies to minor children only,not to adults.
• D)The employer must pay the entire cost of coverage during the continuation period.

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Definitions:

Market Power

The ability of a firm or group of firms to manipulate prices or output in a market.

Excess Capacity

The situation where a firm or an economy is producing less than its potential output, often indicating inefficiencies or a lack of demand.

Monopolistic Competition

A market structure characterized by many firms offering products that are similar but not perfect substitutes, allowing for some degree of market power.

Pure Competition

A market structure characterized by a large number of sellers and buyers, homogeneous products, and the ease of entering and exiting the market.