When the Monopoly Insurer Cannot Observe the Care Taken by the Insured

Multiple Choice

When the monopoly insurer cannot observe the care taken by the insured party to avoid an accident,the most profitable contract for it:

A) offers full insurance at a higher price than the full-information policy.
B) offers full insurance at a lower price than the full-information policy.
C) offers partial insurance at a higher price than the full-information policy.
D) offers partial insurance at a lower price than the full-information policy.