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Mairoon Mairoon
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6 years ago
One reason car insurance seems much cheaper than health insurance?
A) Health insurance entails more idiosyncratic than systematic risk and therefore the gains to diversification are more dramatic.
B) Car insurance entails more systematic than idiosyncratic risk and therefore the gains to diversification are more dramatic.
C) Health insurance entails more systematic than idiosyncratic risk and therefore there are fewer gains to diversification.
D) Health insurance is manipulated through market power and car insurance is not.
Textbook 
Microeconomics

Microeconomics


Edition: 6th
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TecShdwTecShdw
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6 years ago
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Mairoon Author
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#2
6 years ago
Great answer, great website
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#3
2 years ago
.
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