8. Return to Figure 5.2 and consider the following criteria for prescription: A. Maximize effectiveness at least cost [Note: Be careful—this...

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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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