Question

Suppose we are graphing the health stock H as a function of medical spending M; where the function H = H(M) is increasing at a decreasing rate (H0 > 0 and H00 < 0): Researchers argue that the rise of agricultural output increased the height and weight of humans allowing them to better Öght o§ infectious diseases. Graphically illustrate how improved technology in agriculture may have altered the health production function if this theory is correct.

Suppose we are graphing the health stock H as a function of medical spending M, where the function H = H(M) is increasing at a decreasing rate (H' > 0 and H" <0). Researchers argue that the rise of agricultural output increased the height and weight of humans allowing them to better fight off infectious diseases. Graphically illustrate how improved technology in agriculture may have altered the health production function if this theory is correct.

Answer 1

let H = function of 2 variables

H=H(T,M)

T= techonolgy                      .

M=medical spending

dh/dt> 0

As techonological advancements , increases output , it leads to improved height and weight because of higher availabilty of nutrition and thus a better health.

health dh/dt> 0 - strictly increasing function technology