Refer to the table above. If only the two highest-value buyers and the two least-cost sellers engage in trade, what is the social surplus?

An indication that Insurance companies anticipate adverse selection is

a. they require a deductible b. they do not classify clients into different risk types according to their claim history c. they do not classify clients into different risk types according to pre-existing conditions d. they do not require a co-payment

Which of the following statements is not correct?

a. The competitive firm produces where P = MC. b. The monopolist produces where P = MC. c. The competitive firm produces where MR = MC. d. The monopolist produces where MR = MC.