Ask Question
16 May, 01:32

Suppose movie producers could buy "box office insurance" that guaranteed them a specified gross revenue for a particular film. Such policies could be very valuable economically. Producers might produce risky movies. Insurance companies could find selling such policies appealing in principle as well: if insurers spread their risk over enough movies, they could earn enough premium from successful movies. So why there isn't such policy?

+2
Answers (1)
  1. 16 May, 01:40
    0
    Answer and explanation:

    Out of the vast number of movies produced only a few of them become blockbusters. Thus, insurance companies see reduce their chances of insuring such movies. If they would not take this into account and provide a policy to regular and bad performing selling films, insurance companies would be paying huge amounts of money to their producers which is not convenient for them.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose movie producers could buy "box office insurance" that guaranteed them a specified gross revenue for a particular film. Such ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers