Business, 03.12.2021 23:40 connersitte1221l
Consider the project of constructing a dam. The only person affected by this project is a farmer, with utility U (I) where $I is his income. There are two possible contingencies: it rains a lot (wet) or it does not rain a lot (dry). With the dam, his income is $200 if wet and $180 if dry. Without the dam, his income is $150 if Wet and $50 if dry. The probability of raining a lot is 50%. (a) (5 pts) What is the expected surplus of the farmer
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Consider the project of constructing a dam. The only person affected by this project is a farmer, wi...
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