Which statement best characterizes the second-best policy offered by a monopoly insurer when it can't observe the consumer's risk?
a. It is a single contract offering partial insurance at an intermediate price such that all types are served.
b. It is a menu of contracts providing full insurance for the least risky types and partial insurance for higher risks.
c. It is a menu of contracts providing full insurance for the riskiest type and partial insurance at lower prices for lower risks.
d. The market breaks down since the monopolist cannot design contracts without observing each consumer's risk.
c
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Which of the following statements regarding a profit-maximizing monopolistically competitive firm is NOT true?
A) The MR curve lies below the demand curve. B) The firm produces the quantity at which the MR curve intersects the MC curve. C) The MC curve intersects the ATC curve at the ATC curve's lowest point. D) The firm's price equals the price at which the MR curve intersects the MC curve.
The total revenue curve for a firm is given by TR = 2Q.
A. The firm may be a monopolist or a perfectly competitive firm. B. The firm is definitely not a monopolist. C. The firm is definitely a monopolist. D. One cannot tell from the equation what market form applies.
People hold less money and lend more and the interest rate falls when the price level
a) increases by more than 30 percent. b) remains constant. c) increases by less than 30 percent. d) decreases.
Low-cost Eurocurrency loans can be obtained in offshore financial centers.
a. true b. false