Consider a health insurance contract offered to a, Business Economics

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Consider a health insurance contract offered to a

Consider a health insurance contract offered to a population of risk averse people. People in the population have different risks for illness and this is known to each person but is unknown to others. Would the market for this health insurance product be prone to adverse selection? Why? What is one solution to the adverse selection problem in this case?

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Business Economics: Consider a health insurance contract offered to a

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