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What is the outcome in the market for auto insurance when insurance companies have no knowledge about driver types? Question content area bottom Part 1

What is the outcome in the market for auto insurance when insurance companies have no knowledge about driver types? Question content area bottom Part 1 With no knowledge about driver types in the market for auto insurance, the outcome is _______. A. an efficient separating equilibrium B. an inefficient pooling equilibrium C. that aggressive drivers pay a premium that exceeds the insurance company's marginal cost of offering insurance D. that auto insurance companies incur losses on aggressive drivers and on careful drivers

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