We can measure the profits earned by a firm in a competitive industry as

In the table above, how many jackets must Mary forgo for every dress she makes?

A) 2/3 of a jacket B) 12 jackets C) 3/4 of a jacket D) 8 jackets E) 1 1/2 jackets

According to the theory of propitious selection:

a. risk-neutral people are more likely to opt for insurance coverage. b. risk-averse people are more likely to opt for insurance coverage. c. high-risk people submit large claims for insurance coverage. d. high-risk people submit smaller claims for insurance coverage.