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.)

Your company is starting a new r& d initiative: a development of a new drug that dramatically reduces the addiction to smoking. the expert team estimates the probability of developing the drug succesfully at 60% and a chance of losing the investment of 40%. if the project is successful, your company would earn profits (after deducting the investment) of 9,000 (thousand usd). if the development is unsuccessful, the whole investment will be lost -1,000 (thousand usd). your company's risk preference is given by the expected utility function: u(x) v1000 +x, where x is the monetary outcome of a project. calculate the expected profit of the project . calculate the expected utility of the project . find the certainty equivalent of this r& d initiative . find the risk premium of this r& d initiative e is the company risk-averse, risk-loving or risk-neutral? why do you think so?