suppose the person acquires a chronic disease and his health depreciation rate rises to 35% annually. What is the new optimal level of health this person should demand now having the chronic disease?   assume the health production function is h equals 365-1 divided by H where h is the number of healthy days a person has in each year and H is the persons health capital. Assume this person earns $100 a day and the marginal cost of health investment is pi equals 25 and remains constant overtime. The annual interest rate is 5% and health capital depreciates at a rate of 15% per annum

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