A design flaw in deep-sea research submarines has led to the failures of many research projects. These projects are insured against such losses; as a result, claims against policies underwriting deep-sea research projects have increased greatly. Insurance premiums for these projects have been raised in response to these higher claims. These cost increases have led research institutions to try to accomplish more research with fewer research projects.
Which of the following, if true, taken together with the information above, best supports the conclusion that the cost of conducting deep-sea research will continue to rise?
a)Since the risk to insurers of underwriting research is spread over relatively few projects, insurance premiums are necessarily very high.
b)When research projects fail, the causes of failure are generally impossible to pinpoint with accuracy.
c)The greater the research demands placed on a given project, the more likely that project will fail.
d)Most research institutions undertake so few projects that no economies of scale can be realized.
e)Since many research projects are undertaken by coalitions of research institutions, inefficiencies are inevitable
Answers and explanations are welcome!
Which of the following, if true, taken together with the information above, best supports the conclusion that the cost of conducting deep-sea research will continue to rise?
a)Since the risk to insurers of underwriting research is spread over relatively few projects, insurance premiums are necessarily very high.
b)When research projects fail, the causes of failure are generally impossible to pinpoint with accuracy.
c)The greater the research demands placed on a given project, the more likely that project will fail.
d)Most research institutions undertake so few projects that no economies of scale can be realized.
e)Since many research projects are undertaken by coalitions of research institutions, inefficiencies are inevitable
Answers and explanations are welcome!
