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Author Question: Adverse selection in insurance requires that a. potential customers face different levels risk b. ... (Read 41 times)

deesands

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on: Jul 1, 2018
Adverse selection in insurance requires that
 a. potential customers face different levels risk
  b. potential customers facing more risk are no more interested in purchasing insurance
  c. people are not risk averse
  d. insurers can tell higher risk people from lower risk people

Question 2

The deadweight loss from a monopoly refers to:
 a. the portion of a monopolist's profits that are above the competitive profit level.
  b. the increase in price due to the monopolization of a market.
  c. the inefficient use of factors of production by a monopoly.
  d. the loss of consumer surplus due to the monopolization of a market that is not transferred to another economic actor.


anoriega3

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Reply #1 on: Jul 1, 2018
Answer to Question 1

a

Answer to Question 2

d


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