Which of the following best explains why medical and dental coverage can be purchased more cheaply by the employer than the employee?
A) indexation
B) economies of scale
C) utility
D) dividends

Question

Quizplus · Accepted Answer

Employers are able to purchase medical and dental coverage more cheaply due to economies of scale - they are able to negotiate better rates with insurance companies because they are buying coverage for a larger group of people. This results in lower costs for each individual employee.

Which of the Following Best Explains Why Medical and Dental