Chapter 3 - Exchange and Markets - Exercises - 3.3 Market Failure and the Role of Government - Page 65: 3.7a

\$2001

At Risky Business, 20%, or 1 in 5, employees are like to lose his or her job. In order to break even, the insurance for each employee must be $10000\div5=2000$ To make a profit, a minimum of \$2001 would be charged per employee.