Author Question: The source of the adverse selection problem is ______. a. that individuals with high incomes are ... (Read 24 times)

TFauchery · **on:** Jul 1, 2018

The source of the adverse selection problem is ______.

a. that individuals with high incomes are able to pay all medical costs out-of-pocket
b. that individuals least likely to need health care do not purchase insurance
c. individuals lack important information regarding the appropriate health care for them
d. individuals desire to have comprehensive health care insurance

Question 2

Why do firms engage in price discrimination?

A) to decrease cost
B) to increase profits
C) to increase consumer surplus
D) to prohibit the resale of their products