The graph shows the premium in thousands of pesos and the number of insured families measured in
Fantastic news! We've Found the answer you've been seeking!
Question:
The graph shows the premium in thousands of pesos and the number of insured families measured in millions of families. The marginal cost of insurance is $6,000 constant pesos per year per family. The marginal social benefit of insurance exceeds the willingness and ability to pay by a constant amount of $4,000 pesos per family per year.
If the government subsidizes private insurers, what amount of subsidy achieves efficient coverage?
Related Book For
Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
Posted Date: