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A Product Is Often Described as Having a Thin Margin

Question 64

Multiple Choice

A product is often described as having a thin margin or a wide margin. With regard to the factors that help determine the size of the margin of a health plan's product, it can correctly be stated that the


A) greater the risk a health plan assumes in a health plan, the thinner the product margin should be
B) more that competition acts to force prices down, the wider the product margins tend to become 34
C) greater the demand for the product, the thinner the margin for this product tends to become
D) longer the premium rates are guaranteed to a group, the wider the health plan's margin should

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