Tom, the manager and owner of a small company, believes in the signaling theory of education, not the human capital theory. As such, we would expect Tom not to offer which of the following company benefits?

Why would a firm choose to remain in an industry in which it makes an economic profit of zero?

What will be an ideal response?

Insurance companies create wealth by

a. reducing the amount of risk that risk averse individuals must bear b. reducing the amount of risk that risk loving individuals must bear c. increasing the amount of risk that risk averse individuals must bear d. moving an asset from low to high value use