Which of the following is a characteristic feature of service businesses?
a. they are not labor-intensive.
b. the service experience remains constant each time.
c. they cannot incorporate quality standards.
d. the resultant output is mostly tangible.
e. the degree of variation of inputs and outputs is high.

(a) when insurance is obtained through a reciprocal insurer, the insureds are sharing the risk of loss with other subscribers of that reciprocal.

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answer; lags, push the econ below the natural level of output;