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Imagine that our health status (measured by our overall utility level) was only determined by the amount of money that we spent on healthcare.Suppose that
Imagine that our health status (measured by our overall utility level) was only determined by the amount of money that we spent on healthcare.Suppose that the health status can be calculated with the following function:=100.05 U t i l i t y = 10 s p e n d i n g 0.05 s p e n d i n g . Calculate an individual's utility when spending equals $5,000, $10,000, and $20,000. Which level produces the greatest utility?
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