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Compute the welfare loss from adverse selection in this competitive market. Also, compute the number of people Who should have insurance from a social perspective.
Compute the welfare loss from adverse selection in this competitive market. Also, compute the number of people Who should have insurance from a social perspective. Remember that some people here may not have positive social value of insurance, so shouldnt be counted in the deadweight loss from adverse selection. This could be because, e.g. there are administrative costs of providing insurance
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