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Mairoon Mairoon
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6 years ago
Sarah's demand for routine medical visits is q = 10 - 0.2p when she is healthy and q = 20 - 0.2p when she is sick. Medical visits cost $50 each if Sarah has no medical insurance. She is sick 20% of the time. Sarah is considering two different insurance plans. One offers free medical visits; the other plan costs less up front but requires that Sarah pay $5 per medical visit. Compare the two plans in terms of the trade-off between risk and moral hazard.
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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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6 years ago
Helped a lot
mcraver1
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Yesterday
I appreciate what you did here, answered it right Smiling Face with Open Mouth
Helpmeplease11
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2 hours ago
Thank you, thank you, thank you!
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