ABC Energy company leased the mineral rights to drill for oil and gas on 10,000 acres for $500,000. Now the firm is trying to determine whether the cost to drill the well is justified given the poor results on nearby acreage. For financial decision-making, the $500,000 should be: ANSWER considered an erosion cost and ignored. included in the analysis. considered a sunk cost and ignored. I DON'T KNOW YET

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.)