d. Suppose instead that MC1 , p , 10. What would now be the largest possible F
Question:
d. Suppose instead that MC1 , p , 10. What would now be the largest possible F 1
that is consistent with type 1 consumers not buying the type 2 insurance (assuming still that p
1 5 MC1 5 8?) (Hint: Use another graph as you did in the previous part to determine the answer.)
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Related Book For
Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
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