insurance is possible and can be profitable because of a-private information b-adverse selection c-consumers are risk...

insurance is possible and can be profitable because of

a-private information

b-adverse selection

c-consumers are risk aversion

d- moral hazard

e-all of the above

Expert Solution

Ans.- (C)

Consumers are risk averse and therefore they are willing to pay premium in order to get insured and hence insurance companies make profits.

Rahul Sunny answered 2 years ago

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