Inonge has a Barchelors Degree in Health Economics. Suppose Inonge's health production function is given by h = 365 - ¹ where; h: number of healthy days per annum for Inonge H: Inonge's health capital Suppose that Inonge's wages amount to K100 per day and her marginal cost of health investment is 25 and is constant over time. The interest rate is 5% per annum, and health capital depreciation stands at 15% per annum. [For the following questions please paste the pictures of any graphical answer on the answer booklet] a. What is Inonge's Marginal Efficiency of Capital? b. Sketch a well labelled MEC curve 12 c. What is the cost of health capital in this problem? [S
Inonge has a Barchelors Degree in Health Economics. Suppose Inonge's health production function is given by h = 365 - ¹ where; h: number of healthy days per annum for Inonge H: Inonge's health capital Suppose that Inonge's wages amount to K100 per day and her marginal cost of health investment is 25 and is constant over time. The interest rate is 5% per annum, and health capital depreciation stands at 15% per annum. [For the following questions please paste the pictures of any graphical answer on the answer booklet] a. What is Inonge's Marginal Efficiency of Capital? b. Sketch a well labelled MEC curve 12 c. What is the cost of health capital in this problem? [S
Chapter1: Making Economics Decisions
Section: Chapter Questions
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