Question: d. Suppose instead that MC1 , p , 10. What would now be the largest possible F 1 that is consistent with type 1 consumers

d. Suppose instead that MC1 , p , 10. What would now be the largest possible F 1

that is consistent with type 1 consumers not buying the type 2 insurance (assuming still that p

1 5 MC1 5 8?) (Hint: Use another graph as you did in the previous part to determine the answer.)

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