8. Return to Figure 5.2 and consider the following criteria for prescription: A. Maximize effectiveness at least cost [Note: Be carefulâthis...
8. Return to Figure 5.2 and consider the following criteria for prescription:
A. Maximize effectiveness at least cost [Note: Be careful—this is a tricky question].
B. Maximize effectiveness at a fixed cost of $10,000.
C. Maximize costs at fixed-effectiveness level of 4,000 units of service.
D. Achieve a fixed-effectiveness level of 6,000 units of service at a fixed cost of $20,000.
E. Assuming that each unit of service has a market price of $10, maximize net benefits.
F. Again assuming that each unit of service has a market price of $10, maximize the ratio of benefits to costs.
Indicate which of the two main programs (programs I and programs II) should be selected under each of these criteria, and describe the conditions under which each criterion may be and adequate measure of the achievement of objectives.
12 years ago
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