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Which of the following would most likely prevent a mutual insurance association from forming? A) A large number of agents in the market for insurance.

Which of the following would most likely prevent a mutual insurance association from forming?

A) A large number of agents in the market for insurance.

B) Different probabilities of states across the agents (i.e., heterogeneity of agents).

C) Positively correlated outcomes across the agents.

D) None of these options would prevent a mutual insurance association from forming.

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