Multiple Choice
In the market for auto insurance,in a separating equilibrium,
A) risky and safe drivers pay the same premium for insurance.
B) risky drivers pay a larger premium than do safe drivers for insurance.
C) risky drivers pay a smaller premium than do safe drivers for insurance.
D) risky drivers cannot obtain insurance.
E) safe drivers cannot obtain insurance.
Correct Answer:
Verified
Correct Answer:
Verified
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