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Problem
A meat packing house is creating a new variety of hot dog for the low-calorie, low-fat, low-cholesterol market. This new hot dog will be made of beef and pork, plus either chicken, turkey, or both. It will be marketed as a 2-ounce all-meat hot dog, with no fillers. Also, it will have no more than 6 grams of fat, no more than 27 grams of cholesterol, and no more than 100 calories. The cost per pound for beef, pork, chicken, and turkey, plus their calorie, fat, and cholesterol counts are shown in the following table.
The packer would like each 2-ounce hot dog to be at least 25% beef and at least 25% pork. What is the most economical combination of the four meats to make this hot dog?
Joe is currently unemployed and without health insurance coverage. He derives utility (U) from his interest income on his savings (Y) according to the following function: U = 5(Y1/2). Calculate Joe’s expected utility level without any health insuranc..
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