Calculate the marginal benefit (in terms of lives saved) and the marginal cost (in terms of lives lost) of increasing the percent of the population vaccinated from 20% to 30%. In addition, calculate the net increase in human lives.

Decision Making by Individuals and Firms - End of Chapter Problem 8. The Canadian National Advisory Committee on Immunization (NACD) has recommended against vaccinating the whole population against the smallpox virus because the vaccination has undesirable, and sometimes fatal, side effects. Suppose the accompanying table gives the data that are available about the effects of a smallpox vaccination program. Percent of population vaccinated Deaths due to smallpox Deaths due to vaccination side effects 0% 200 10 180 4 20 160 10 30 140 18 40 120 33 50 100 50 60 80 74 a. Calculate the marginal benefit (in terms of lives saved) and the marginal cost (in terms of lives lost) of increasing the percent of the population vaccinated from 20% to 30%. In addition, calculate the net increase in human lives. MB: lives saved MC: lives lost Net benefit: lives saved b. Using marginal analysis, determine the optimal percentage of the population that should be vaccinated. Optimal percent