Assume that a single insurance plan applies to 2,000 low-risk people and 1,000 high-risk people opting for insurance coverage. If the average claim submitted by low-risk people is $100 while that submitted by high-risk people was $1,000 . the insurer would break even by setting a premium of:
a. $250.
b. $400.
c. $200.
d. $500.
B
Economics
You might also like to view...
Which of the following is NOT an example of a factor of production?
A) Coal B) Tractors C) Cigarettes D) College graduates
Economics
If additional units of a good could be produced at a constant opportunity cost, the production
possibilities frontier would be bowed outward (concave). Indicate whether the statement is true or false
Economics