Answer:
C) raise her deductible from $250 to $1,000
Explanation:
If Donna starts to drop all her coverages, then she will not only pay less, she wouldn't any insurance to cover her.
If she really needs to lower her insurance costs, the best way to do it is to raise her deductible. That way she will still be covered, but she will need to put more money in case of an accident. To be honest, generally car accidents cost thousands, and increasing the deductible from by $750 is not really that much compared to what an insurance policy covers.
The deductible is the amount of the insurance claim that must be paid by the insured, the rest is paid by the insurance company.
Answer: $305
Explanation:
The avoidable production cost for Chris to produce one mini long board goes thus:
Unit Level Cost = $280
Add: Product Level Cost = $25,000 / 1000 units = $25
Then, the avoidable cost to produce one unit will be:
= $280 + $25
= $305
The answer in the space provided is second. The diminishing
returns set happens when there is an increase with the input variable and by
this, it will likely cause the output to decrease as the marginal increase and
in the same time, other inputs remains to be in constant.
