Suppose that young drivers are less likely to have an automobile accident than adult drivers. As a result, insurance companies charge lower insurance premiums for young drivers. Suppose one insurance company decided to charge young drivers and adult drivers the same premium based on the average risk of an accident among both groups. Using your knowledge of the problems associated with asymmetric information, explain whether you think this insurance company will be profitable. This insurance company is unlikely and adult drivers will be lower choose to be insured by this company but aduht claims of an adult-only driver pool and so the companyl would not to be profitable because of the problem of adverse selectionThe insurance premium based on the average risk of an accident among both young drivers will not drivers will. The rem um charged based on the average risk of young and adult drivers ould be sufficien too ethe than the premium for adult drivers alone and lower than the premium for young drivers alone. Therefore, I young be profitable