Question: Explain clearly 3. Suppose that, on average, people in Davis are healthier than people in Sacramento. That said, average medical expenditures are higher in Sacramento.

 Explain clearly 3. Suppose that, on average, people in Davis are

Explain clearly

healthier than people in Sacramento. That said, average medical expenditures are higher

3. Suppose that, on average, people in Davis are healthier than people in Sacramento. That said, average medical expenditures are higher in Sacramento. Is it possible that Davis and Sacramento are on the same Health Production Frontier (HPF)? Explain your answer graphically using the HPF graph. (12 points)

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