Question: Simulate a basic search model to examine the relative gains from additional rounds of searches for health insurance.Assume that you need to physically be in

Simulate a basic search model to examine the relative gains from additional rounds of searches for health insurance.Assume that you need to physically be in an office to receive the rate. Also assume that there are two annual rates: $5000 and $10000 and you don't know which rate you will receive until you receive a quote. Show step by step calculations.

1.Find the marginal benefit of making 4visits if the odds are 50/50that you will receive a $5000quote or a $10000quote.

2.If your marginal cost per visit is $100 of lost wages,should you have made all 4visits?Or should you have stopped at a certain point?

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