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Consider an imaginary country of Farma with a population of 10,000 people. Suppose that a serious disease affects 5% of the population. The treatment costs

Consider an imaginary country of Farma with a population of 10,000 people. Suppose that a serious disease affects 5% of the population. The treatment costs $10,000. Given that all citizens are risk-averse, how much is likely to be their insurance payment? a. $5,000. b. $500. c. $10,000. d. $50

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