question1(a) With the aid of a diagram, please explain how an insurance firm candesign two insurance policies in such a way that high risk customers (those more likely to make a claim) choose one policy and low risk customers (those less likely to make a claim) choose the other policy. (b) Suppose that another insurance firm simply offers one insurance policythat is intended to attract both kinds of customer. In your opinion, will this insurance firm be successful in competing against the first insurance firm in the long run? Please explain your opinion.