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JamesLu JamesLu
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6 years ago
Ashley opened an all-you-can-eat buffet restaurant. The cost per-person was based on what Ashley believed an average restaurant patron would consume. The restaurant began to lose money. Ashley concluded that her patrons had "above average" appetites, and were attracted to her restaurant because they could eat as much as they wanted while being charged an average price. A similar phenomenon exists in insurance markets. This problem is called
A) legal hazard.
B) adverse selection.
C) attitudinal hazard.
D) nondiversifiable risk.
Textbook 
Principles of Risk Management and Insurance

Principles of Risk Management and Insurance


Edition: 12th
Authors:
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ownzore3ownzore3
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JamesLu Author
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6 years ago
Thank you, thank you, thank you!
gage
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Yesterday
Thanks for your help!!
Turboturner
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2 hours ago
This helped my grade so much Perfect
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