What assumption of the perfect competition model

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Perfectly competitive markets are considered by economists to be effcient. Therefore government should let those markets run freely without intervention. The provisions of health care insurance, however, are mostly regulated by government in most developed countries.

(a) What assumption(s) of the perfect competition model that the health care insurance market does not satisfy?

(b) What is the key informational problem in this market?

Reference no: EM13978037

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