Consider the market for health insurance in whichthe average health care cost required for customers per year is distributed uniformly on the interval [5000,49000]. In other words C~U[5000,49000]. Each single customer knows his/her exact health care cost per year. Insurance companies, however, know the distribution of their customers health status but not the exact health status of a specific customer.Assume that a specific insurance package paying C is worth C-1/4 C to the customer and C-1/2 C to the insurance company.
Determine the price range for a 20,000 dollarinsurance package which leads to a Pareto optimal exchange under complete information