30) Suppose Brandon's indifference curves are 3 defined as U = (³)√√F¸ + (1)√FH S where F's is consumption during sunny weather and FH is consumption during a hurricane. Further suppose Brandon receives 64 units of food when it is sunny and 16 units when there is a hurricane. If the probability of sunshine is II = 0.75, expected food consumption is A) 28. B) 40. C) 52. D) 80.

30) Suppose Brandon's indifference curves are 3 defined as U = (³)√√F¸ + (1)√FH S where F's is consumption during sunny weather and FH is consumption during a hurricane. Further suppose Brandon receives 64 units of food when it is sunny and 16 units when there is a hurricane. If the probability of sunshine is II = 0.75, expected food consumption is A) 28. B) 40. C) 52. D) 80.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter7: Uncertainty

Section: Chapter Questions

Problem 7.8P

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