The foundational principle that makes insurance companies work is called:

For products like parking lots and hotels, costs of building capacity are mostly fixed or sunk and firms in this industry typically face capacity constraints. Therefore,

a. If SRMR>SRMC at capacity, then the firms should price to fill capacity b. If SRMRLRMC at capacity, then the firms should price to fill capacity d. If LRMR>LRMC at capacity, then the firms should price to fill capacity

Rapid population growth can threaten sustained economic growth if it: a. leads to diminishing marginal returns in production

b. remains unmonitored by government agencies. c. enables economies of scale in production to be exploited. d. leads to increased capital formation.