Business, 01.07.2020 15:01 mooreadrian41235

Suppose that the average annual malpractice cost is $50,000 for reckless doctors and $1,000 for careful doctors. If half of an insurance company's insured doctors are reckless, the company will earn zero economic profit if the price of insurance is $nothing. If careful doctors are not willing to pay more than $5,000 for insurance, the price required for zero economic profit is $nothing.

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Suppose that the average annual malpractice cost is $50,000 for reckless doctors and $1,000 for care...

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