Payoff Matrix, A farmer grows apples on her 400-acre farm and must cope with occasional, Mathematics

Payoff Matrix, Mathematics

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A farmer grows apples on her 400-acre farm and must cope with occasional infestations of worms. If she refrains from using pesticides, she can get a premium for "organically grown" produce and her profits per acre increase by $700 if there is no infestation, but they decrease by $200 if there is. If she does use pesticides and there is an infestation, her crop is saved and the resulting apple shortage (since other farms are decimated) raises her profits by $300 per acre. Otherwise, her profits remain at their usual levels.

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Payoff Matrix, Mathematics

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