Question
Assume that Google is only concerned about reducing total costs, in which total costs include both healthcare costs plus its gym membership costs. Assume the
Assume that Google is only concerned about reducing total costs, in which total costs include both healthcare costs plus its gym membership costs. Assume the amount of the cash voucher in the question above results in the marginal benefit of the cash voucher (i.e., benefit being a reduction in healthcare costs) being greater than the marginal cost of the cash voucher (i.e., cost being the dollar cost of the voucher). In order to reduce total costs and assuming diminishing marginal benefits, then Google should ____.
Choose 1: Decrease the dollar amount of the voucher, Keep the voucher amount the same, Increase the dollar amount of the voucher
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