What Are Two Factors That Would Influence the Cost of Premiums

question 1

Multiple Choice

What are two factors that would influence the cost of premiums for a malpractice insurance policy?

• A) Size of the practice and the number of staff members
• B) The requirements of the staff to be registered or certified and the type of practice
• C) The length of time the physician has been a specialist and the dollar amount covered
• D) Whether the physician has hospital admitting privileges and the type of practice
• E) The dollar amount covered by the insurance policy and the physician's specialty

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Definitions:

Purely Competitive Market

A market structure characterized by many buyers and sellers, homogeneous products, and no barriers to entry or exit, leading to minimal market power for individual firms.

Long Run Adjustments

Changes made by firms or economies over time to adapt to market conditions, wherein all inputs can be varied and no factors are fixed.

Industry Profits

The total earnings generated by companies within a specific industry, after all costs and expenses are deducted.

Increasing-cost Industry

An industry in which the costs of production increase as the industry output increases, often due to the inputs' prices rising as demand for them grows.