Multiple Choice
What worsens adverse selection in a dental insurance market where buyers have private information?
A) Selling only to risk-averse buyers.
B) Grouping buyers by a risk factor and charging a premium based on risk.
C) Requiring that each buyer's premium be based on that specific buyer's costs.
D) Allowing buyers to opt-in and opt-out of the market at any time they desire.
Correct Answer:
Verified
Correct Answer:
Verified
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