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a. Assume there is no insurance. What condition must be satisfied for farmers to choose effort level pa? For the remainder of this problem, assume

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a. Assume there is no insurance. What condition must be satisfied for farmers to choose effort level pa? For the remainder of this problem, assume that this condition is satisfied. What is each farmer's expected consumption under this choice of effort? What is their expected utility? b. What does risk-aversion imply about the shape of u? Explain why we interpret this condition on u as risk-aversion

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