Prepare a payoff matrix.A farmer must decide on which of two pieces of land to grow his crops. The first piece of land has better soil and will yield a larger harvest. However this piece of land is low lying and is coastal and his crops will be destroyed in the event of a storm and flooding. The second piece of land has poorer soil but is at a higher elevation and would not be affected by flooding. If he uses the low-lying piece of land and there is no flooding he will make a profit of $16,000. If he uses the low-lying piece of land and there is flooding, he will lose $6000. If he uses the higher piece of land and there is no flooding, he will make a profit of $10,000. If he uses the higher piece of land and there is flooding, he will make a profit of $13,000. (If there is flooding

Question

there will be a smaller supply of the crop and his profit will be higher). Prepare a payoff matrix.



A.

Answer 1

Answer: C