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 that screening at various frequencies will detect. The frequency of screening is how often the entire population (of 5,000 people) will be screened over a 10-year period. For example, a Frequency of 5 means the entire population will be will be screened 5 times over a 10-year period. Suppose further that each early detection case is considered to have a benefit of $50,000 and the cost of screening the population is $9,000,000. Frequency of screening the population (number of times over 10 year period) 10 Total Number of Early Detection Cases 0000 0 1 2 3 4 5 Using the marginal benefit/marginal cost rule, what is the optimal frequency for screening (over this ten-year period)? 2 times 5 times 3 times 4 times 400 700 900 1000 1000 I

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 that screening at various frequencies will detect. The frequency of screening is how often the entire population (of 5,000 people) will be screened over a 10-year period. For example, a Frequency of 5 means the entire population will be will be screened 5 times over a 10-year period. Suppose further that each early detection case is considered to have a benefit of $50,000 and the cost of screening the population is $9,000,000. Frequency of screening the population (number of times over 10 year period) 10 Total Number of Early Detection Cases 0000 0 1 2 3 4 5 Using the marginal benefit/marginal cost rule, what is the optimal frequency for screening (over this ten-year period)? 2 times 5 times 3 times 4 times 400 700 900 1000 1000 I

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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