please solve, explain process to solve, I have answers

total costs incurred over product repairs with estimated to be 100,000. Consider a simplified model of the market insurace of a product. Assume that there are 1,000 people classified as standard product takers and 1,000 people classified as intense product takers". for standard product takers 20% take repairs, for intense product takers" 30% take repairs. Assume an individual can expect to earn $2,000,000 in repairs covers. Additionally, assume individuals spend all their money on consumption, and u(c)= root(c). Ignore any intertemporal considerations of interest rates, inflation or discount factors, i.e. r=0. Ignore any intertemporal considerations of interest rates, inflation or discount factors, i.e. r=0. that insurance companies are risk-neutral, and that the market for providing insurance is perfectly competitive.

What prices for insurance contracts will be offered?

consumers willingness to pay(standard product takers)= ?

consumers willingness to pay(intense product takers)= ?

how come this does factor the risk for repairs to calculate utility of insurance? u(no insurance) = risk for repairs *root (2,000,000 - 100,000) - (1-risk of repairs)*root (2,000,000)

how come this does not factor the risk for repairs to calculate utility of insurance? u( insurance) = root (2,000,000 -price)

why is the consumers willingness to pay calucated like this:

consumers willingness to pay = 2,000,000 - (risk for repairs *root (2,000,000 - 100,000) - (1-risk of repairs)*root (2,000,000) )^2

Suppose insurance companies may measure the the consumers types of an individual prior to offering them an insurance contract for the product, and price their contract based on the result. Assume the only costs the insurance company faces are payments for medical costs are if they have the repairs

competitive market price = cost why do we multiply by the percentage of repairs take up? should it not not be multiple by 1000 people since there is 1000 type of each consumers why is price calculated for this?

price standard product takers = 0.20*100,000

price intense product takers = 0.30*100,000