When the monopoly insurer cannot observe the care taken by the insured party to avoid an accident,the most profitable contract for it:
A)offers full insurance at a higher price than the full-information policy.
B)offers full insurance at a lower price than the full-information policy.
C)offers partial insurance at a higher price than the full-information policy.
D)offers partial insurance at a lower price than the full-information policy.

Question

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The Answer of When the monopoly insurer cannot observe the care taken by the insured party to avoid an accident,the most profitable contract for it:
A)offers full insurance at a higher price than the full-information policy.
B)offers full insurance at a lower price than the full-information policy.
C)offers partial insurance at a higher price than the full-information policy.
D)offers partial insurance at a lower price than the full-information policy.

When the Monopoly Insurer Cannot Observe the Care Taken by the Insured