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Homework answers / question archive / You buy a new cellphone and pay $3 per month to insure the phone against damage or loss

You buy a new cellphone and pay $3 per month to insure the phone against damage or loss

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You buy a new cellphone and pay $3 per month to insure the phone against damage or loss. What potential problem is now faced by the phone company?

A. unassigned property rights

B. free-rider problem

C. moral hazard

D. tragedy of the commons

Option 1

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