Question
Life expectancy in years (L) is a function of two inputs, health expenditures (H) and nutrition expenditures (N) in hundreds of dollars per year. The
Life expectancy in years (L) is a function of two inputs, health expenditures (H) and nutrition expenditures (N) in hundreds of dollars per year.
The production function isL=cHNL=cHN Now suppose that N = 2, H = 2 and c = 20. You run a charity that can provide either food aid or health aid to this country. Which would provide a greater marginal benefit: increasing H or N?
Increase H
Increase N
Equal Impact from either
Not enough information to determine the effects.
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International Economics
Authors: Robert Carbaugh
15th edition
1285854357, 978-1305177093, 1305177096, 978-1285854359
