State a utility function in general form for a consumer that includes health as one good and "all other goods" as the second good. In this derivation, consider that health is a good that is "produced," therefore, utility will be a function of the production of health, which has an input of physician services.

 Carefully describe why physicians' services would be included in the production function and what other inputs to the production of health might be included. Include a description of the budget constraint facing the consumer.

 

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A utility function in general form for a consumer that includes health as one good and all other goods as the second good can be represented as UH X w... View the full answer