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Explain how moral hazard works in the following scenarios: a. Not installing a smoke alarm because you have fire insurance b. Being rough on the
Explain how moral hazard works in the following scenarios: a. Not installing a smoke alarm because you have fire insurance b. Being rough on the clutch in a rental car when you would be careful in your own c. Taking big bets in a marketplace with your firm's capital because you have limited exposure to the downside but lots of exposure to the upside. d. Being careless as a doctor because you have malpractice insurance .
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