13. Consider the information concerning the costs and QALYS for various treatments for heart disease that is presented in the table below: Treatment Cost per TreatmentQALYs Gained A B C 100 300 400 600 800 2 8 8 12 15 E F Which treatment alternative(s) is (are) not economically rational (NER) because it is (they are) dominated? а. В O b. B & C О с.С O d. D

13. Consider the information concerning the costs and QALYS for various treatments for heart disease that is presented in the table below: Treatment Cost per TreatmentQALYs Gained A B C 100 300 400 600 800 2 8 8 12 15 E F Which treatment alternative(s) is (are) not economically rational (NER) because it is (they are) dominated? а. В O b. B & C О с.С O d. D

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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12 Demand elasticity and social loss. Consider two vaccines for difffferent viruses χ and Ω Assume that the marginal cost of producing both drugs is constant and that the fixed cost is small. In other words, assume that the supply curve for both drugs is flat. a Suppose that demand for vaccine χ is price elastic, whereas demand for vaccine Ω is relatively inelastic. Plot the private demand curve for both drugs on separate axes. b For the sake of example, assume that both viruses have the same externality. Plot the social demand curve for both drugs and label the social loss in each case. c Explain intuitively why, all else equal, social loss is greater in the case of elastic demand than it is in the case of inelastic demand.
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9. Consider the following hypothetical three-stage screening test for a cancer with the following rates of detection and costs: Stage 2 3 Number of Cases Detected 100 110 125 135 Total $150,000 $180,000 $250.000 $310.000 A. Calculate the average cost per cancer detected in the three stages. B. Calculate the marginal cost per cancer detected in the three stages. C. Suppose that the marginal benefit per treated case is $4,600 per person. What would be the optimal screening, given the costs?
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explain whether or not you feel Ford did anything morally wrong in weighing the economics of the Pinto manufacturing versus consumer deaths. Also, do you think it was a legitimate defense for Ford to state that their cars met or exceeded the safety standards set by the US government?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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