If the company can correctly anticipate the adverse selection, ...

[WhattoUnderstand]

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

[cswans24]

Answer to Question 1

b

Answer to Question 2

d

[WhattoUnderstand]

Thanks for the timely response, appreciate it

[gcook]

Excellent