If variable costs increase, and all other factors remain the same, the margin of safety will become smaller

The assumptions for relative PPP are more rigid than the assumptions for absolute PPP

Indicate whether the statement is true or false.

What is the rationale for having a special limit of liability on for example a stamp collection?

A) There is no limit on the liability for a stamp collection. B) To prevent moral hazard C) It is difficult to determine the amount of loss. D) Both B and C