Question: Which costs will change with an increase in activity within the relevant range? O Unit variable cost and unit fixed cost. Unit fixed costs and

Which costs will change with an increase in activity within the relevant range? O Unit variable cost and unit fixed cost. Unit fixed costs and total variable cost. Total fixed costs and total variable cost. Unit fixed cost and total fixed cost

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Although a firm prediction of Akerlofs model, the adverse selection death spiral has never been observed in practice.

Ex post risk is typically much lower than ex ante risk because uncertainty is largely eliminated by the purchase of an insurance contract.

In some markets, adverse selection develops over time as customers learn about their own risk levels.