Businesses are structured to make money. that's part of what defines success for a business. company leaders strive to generate as much profit as possible by increasing revenue while decreasing costs.

it costs the company money to provide benefits to employees, such as insurance. and yet companies often provide health and dental insurance for their employees. they also pay for insurance to employees who become injured or disabled.

given the costs associated with insurance, why do companies provide insurance plans to employees?

Suppose 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 is upper l equals ch superscript 0.40 baseline upper n superscript 0.60l=ch0.40n0.60. beginning with c = 1, a health input of $400400 per year (hequals=44) and a nutrition input of $400400 per year (nequals=44), show that the marginal product of health expenditures and the marginal product of nutrition expenditures are both decreasing. the marginal product of health expenditures when h goes from 44 to 55 is nothing, and the marginal product of health when h goes from 66 to 77 is nothing. (round your answers to three decimal places.)