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Assume Brandon's Benefit Function for Water Is and He

Question 12

Multiple Choice

Assume Brandon's benefit function for water is Assume Brandon's benefit function for water is and he consumes water both in droughts,W<sub>D</sub> and in the rainy season,W<sub>R</sub>.Assume his water bundle is W<sub>D</sub> = 400 and W<sub>R</sub> = 100 and the probability of drought is 0.75.Expected water consumption is A) 500 B) 250 C) 325 D) 175 and he consumes water both in droughts,WD and in the rainy season,WR.Assume his water bundle is WD = 400 and WR = 100 and the probability of drought is 0.75.Expected water consumption is


A) 500
B) 250
C) 325
D) 175

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