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In: Economics

Insurance companies are able to create wealth by: Reducing the cost of risky situations for risk-averse...

  1. Insurance companies are able to create wealth by:

    Reducing the cost of risky situations for risk-averse individuals.

    Reducing the cost of risky situations for risk-loving individuals.

    Increasing the cost of risky situations for risk-averse individuals.

    Increasing the cost of risky situations for risk-loving individuals.
      

Solutions

Expert Solution

Reducing the cost of risky situations for risk-averse individuals.
Explanations: Risk averse individuals pay for insurance in order avoid risky situations.

Rahul Sunny answered 2 years ago
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