Use the following to answer question: 
-(Figure: Marginal Decision Rule) Use Figure: The Marginal Decision Rule.If P1 is the market price and if this firm is maximizing profit,it should produce:
Definitions:
High Risk
Situations or investments that carry a significant possibility of loss or failure.
Low Risk
Pertaining to situations or investments that have a minimal likelihood of loss or failure.
Insurance Market
The marketplace where individuals or entities can purchase insurance products to transfer risk from themselves to an insurance provider.
Adverse Selection
A situation in which one party in a transaction has more or better information than the other, leading to an imbalance that can result in market inefficiency or failure.
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