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Author Question: If the company can correctly anticipate the adverse selection, what premiums would it charge? a. ... (Read 85 times)

WhattoUnderstand

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on: Jul 1, 2018
If the company can correctly anticipate the adverse selection, what premiums would it charge?
 a. 2500
  b. 2600
  c. 1000
  d. 1100

Question 2

If you are willing to purchase a house for 300,00 . and you purchase the house for 275,000 . this transaction will generate:
 a. There is no surplus created
  b. 25,00 . worth of seller surplus and unknown amount of buyer surplus
  c. 10,00 . worth of buyer surplus and 15,00 . of seller surplus
  d. 25,00 . worth of buyer surplus and unknown amount of seller surplus


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cswans24

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

b

Answer to Question 2

d


WhattoUnderstand

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Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)

smrtceo

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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