A farm owner has three possible hiring decisions.His profits depend on the growing season as shown below.If the probability of a good growing season is 0.75.If the farmer is risk averse, he would ________________________ .

A)hire migrant workers
B)hire teenagers
C)do not do any extra hiring
D)make the same decision as he would using the expected value approach
E)give up farming

Question

A farm owner has three possible hiring decisions.His profits depend on the growing season as shown below.If the probability of a good growing season is 0.75.If the farmer is risk averse, he would ________________________ .

A)hire migrant workers 
B)hire teenagers 
C)do not do any extra hiring 
D)make the same decision as he would using the expected value approach 
E)give up farming

Quizplus · Accepted Answer

The Answer of A farm owner has three possible hiring decisions.His profits depend on the growing season as shown below.If the probability of a good growing season is 0.75.If the farmer is risk averse, he would ________________________ .

A)hire migrant workers 
B)hire teenagers 
C)do not do any extra hiring 
D)make the same decision as he would using the expected value approach 
E)give up farming

A Farm Owner Has Three Possible Hiring Decisions