4.

a. Contrast oligopoly vs. perfect competition prices and explain why they are different.

b. Draw the locus of possible insurance contracts in the oligopolistic market and the perfectly competitive market for health care. Draw this in the "Premium vs. Level of coverage" space.

c. What happens to cost, coverage, and utility when oligopolies are broken into competitive markets? Illustrate these changes with arrows indicating the amount and direction of change on the same diagram.