I need some help with the 2 bolded questions. Thank you!

2. An individual values her health as well as money. She has income y, can purchase medical services 111. Her utility function is given by u(m;?~,w) = Mm - l; 0)) +y(m) where l and m are parameters, m is the market value of the medical services she purchases, and y(m) is her remaining income aer purchasing medical services m. We'll consider health insurance contracts that take the following form: the individual pays a premium p to the insurance company regardless of her medical spending. Then, for each dollar of medical spending, she pays c E [0, 1] out of her own pocket, and the insurance company covers the remaining expenses. Therefore, y(m)=y-P-c>