Suppose a US medical board is using marginal analysis to determine the optimal screening frequency for a specific disease. Below is the approximate number of early cases detected as you expand testing to a broarder population. Suppose further that each early detection case is considered to have a benefit of $50,000 and the cost of screening one person is $20,000. Number of people Total Number of screened in a Early Detection given a year Cases 1,000 500 2,000 1000 3,000 1400 4,000 1700 5,000 1900 The marginal benefit to screening 2 thousand people is 500 early detection cases ($25,000,000); 400 cases ($20,000,000) 1000 early detection cases ($50,000,000); 1400 ($70,000,000) early cases ($70,000,000) early cases; 1000 early detection cases ($50,000,000) 400 cases ($20,000,000); 500 early detection cases ($25,000,000) 1400 O O O and 3 thousand people is_____.
Suppose a US medical board is using marginal analysis to determine the optimal screening frequency for a specific disease. Below is the approximate number of early cases detected as you expand testing to a broarder population. Suppose further that each early detection case is considered to have a benefit of $50,000 and the cost of screening one person is $20,000. Number of people Total Number of screened in a Early Detection given a year Cases 1,000 500 2,000 1000 3,000 1400 4,000 1700 5,000 1900 The marginal benefit to screening 2 thousand people is 500 early detection cases ($25,000,000); 400 cases ($20,000,000) 1000 early detection cases ($50,000,000); 1400 ($70,000,000) early cases ($70,000,000) early cases; 1000 early detection cases ($50,000,000) 400 cases ($20,000,000); 500 early detection cases ($25,000,000) 1400 O O O and 3 thousand people is_____.
Chapter1: Making Economics Decisions
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Transcribed Image Text:Suppose a US medical board is using marginal analysis to determine the optimal screening frequency for a specific
disease. Below is the approximate number of early cases detected as you expand testing to a broarder population.
Suppose further that each early detection case is considered to have a benefit of $50,000 and the cost of
screening one person is $20,000.
Number of people Total Number of
screened in a
Early Detection
given a year
Cases
1,000
500
2,000
1000
3,000
1400
4,000
1700
5,000
1900
The marginal benefit to screening 2 thousand people is, and 3 thousand people is
500 early detection cases ($25,000,000); 400 cases ($20,000,000)
1000 early detection cases ($50,000,000); 1400 ($70,000,000) early cases
O
1400 ($70,000,000) early cases; 1000 early detection cases ($50,000,000)
400 cases ($20,000,000); 500 early detection cases ($25,000,000)
P
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