Aurora corporation operated without insurance coverage for the first month or operations then on February 1st the company paid the $4,800 premium on a 2-year insurance policy with benefits beginning on that date the company uses the cereal basis how much insurance expense will be reported on the companies income statement for the first year ended December 31st

With signals from no-claim bonuses and deductibles, a. the marginal cost curve for careful drivers lies to the left of the marginal cost curve for aggressive drivers b. auto insurance companies insure more aggressive drivers than careful drivers because aggressive drivers have a greater need for the insurance c. the market for car insurance has a separating equilibrium, and the market is efficient d. most drivers pay higher premiums than if the market had no signals