e. Suppose for a moment that it is an equilibrium for the industry to offer only contracts

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e. Suppose for a moment that it is an equilibrium for the industry to offer only contracts A and B (and suppose that the actual B is just slightly to the left of the B you identified in part (d)).

True or False: While insurance companies do not know what type consumers are when they walk into the insurance office to buy a policy, the companies will know what type of consumer they made a contract with after the consumer leaves.

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