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is there welfare loss? why ? there welfare loss? Why? Edit View Insert Format Tools Table Actuarially fair premium = CD Risk Premium =BC Utility
is there welfare loss? why ? 
there welfare loss? Why? Edit View Insert Format Tools Table Actuarially fair premium = CD Risk Premium =BC Utility level with competitive markets (fair premium) =F Risk premium is paid =E Since the mandate for premium is over BD, the utility level is less than E since the person would prefer not to insure at that premium. there welfare loss? Why? Edit View Insert Format Tools Table Actuarially fair premium = CD Risk Premium =BC Utility level with competitive markets (fair premium) =F Risk premium is paid =E Since the mandate for premium is over BD, the utility level is less than E since the person would prefer not to insure at that premium Step by Step Solution
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Fundamental Accounting Principles Volume 2
Authors: John Wild, Ken Shaw, Barbara Chiappetta
21st Edition
0077716663, 978-0077716660
