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Real-Life Decision Making -- Solution

You buy at a guaranteed price of $65 per megawatt.

This is what Wesley Allen, an electricity trader, would do. Reliability is a key consideration when making deals in the energy market.

"It's a great example of why the more successful people are more risk averse," says Allen. "So, yeah, I would pay more."

The consumer is the one who suffers when the price of energy suddenly shoots up. If you're working for the consumer, it's best to work at keeping prices even and stable, rather than giving breaks some months and huge increases other months.