Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 3 - Exchange and Markets - Exercises - 3.3 Market Failure and the Role of Government - Page 65: 3.7a

Answer

\$2001

Work Step by Step

At Risky Business, 20%, or 1 in 5, employees are like to lose his or her job. In order to break even, the insurance for each employee must be $10000\div5=2000$ To make a profit, a minimum of \$2001 would be charged per employee.
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