If insurance companies are required to offer coverage to all interested people, it is said that premiums for each person will be increased. Assume that the insurance market is perfectly competitive. What is the major reason for raising the premium?
A) The insurance companies take advantage of the increased demand and collude.
B) Medical services are more expensive because of increased demand.
C) Less healthy people join the pool of insured and hence increase the risk and the premium.
D) None of the statements is correct.
Correct Answer:
Verified
Q25: Which of the following is a possible
Q41: Consumers spend a lot more time searching
Q42: To avoid the winner's curse,a bidder should:
A)
Q44: Your firm is planning to hold an
Q47: The winner's curse occurs:
A) only in English
Q49: A consumer spends more time searching for
Q61: A risk-neutral monopoly must set output before
Q66: A risk-neutral monopoly must set output before
Q71: Consider an antique auction where bidders have
Q74: Consider an antique auction where bidders have
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents