Experience rating systems for pricing insurance are based on past medical bills of a firm's employees.
Answer the following statement true (T) or false (F)
True
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A firm in perfect competition is a price taker because
A) there are no good substitutes for its good. B) many other firms produce identical products. C) it is very large. D) its demand curves are downward sloping. E) its demand curve is vertical at the profit-maximizing quantity.
If it is impossible or very costly to prevent someone from benefiting from a good even if the person does not pay for it, the good is
A) nonrival. B) nonexcludable. C) pure. D) rival.
Which of the following is NOT a reason for average costs to fall according to the learning curve?
A) Workers accomplish tasks more quickly after doing the task a few times. B) Managers schedule more efficiently over time. C) Engineers determine more accurately what tolerances can be used. D) Suppliers may become better able to produce the exact inputs the firm needs. E) Competing firms leave the industry as the learning firm becomes more efficient.
What differentiates a savings deposit from a small-denomination certificate of deposit (CD)?
A. A savings deposit cannot be withdrawn before its maturity date without incurring a penalty; funds in a CD are available at any time with no interest penalty. B. A CD has a fixed maturity date; a savings deposit can be withdrawn at any time. C. All depository institutions accept savings deposits, whereas only a thrift institution can issue a CD. D. Only a savings deposit is a time deposit.