Multiple Choice
Suppose Brandon's indifference curves are defined as
, where C is a constant,FH 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 P = 0.75, expected food consumption is
A) 28
B) 40
C) 52
D) 80
Correct Answer:
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