Part a, b, and c

1. The small nation of Westeros has population 10,000, and none of its citizens has health insurance. Vandelay Industries (VI), a successful importer/ exporter, sees an opportunity to branch into the health-care business. Currently, to our great mathematical convenience, the citi zens' annual health care costs are uniformly distributed between 0 and $10,000. Each citizen's cost of care is known to them, and is the same every year, but is private. VI could care for any customer more ef- ciently; an individual whose care currently costs 6 can be provided the same care by V1 for only .80. The market will work as follows: VI chooses a price p and will offer full care for the next year to anyone who signs up at this price. Citizens know their own cost C and sign up if p