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N2 The government is offering an insurance that can take away the weather risk that could be faced in the worst two states of nature,

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The government is offering an insurance that can take away the weather risk that could be faced in the worst two states of nature, giving the farmer an equivalent to the second-best state of nature. If the insurance cost is constant per hectare = $20 (in AUD'000), should the farmer buy the government insurance? If yes, which crop should the farmer choose?

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