Description

The table below shows the results of total marginal benefits from different

combination of program selection. If only $500,000 budget available for the public health

services, by using marginal analysis, see the table below for information.

Project AProject BProject CProject DProject E

CostTotal Benefit Total Benefit Total Benefit Total Benefit Total Benefit

100,000$280$340$320$280$310

100,000430570590530590

100,000510620660590680

100,000565680710660725

100,000620730750710760

A) What will be the best choice of program combination to be selected? Please explain

your steps and numbers.

B) What is the final total benefits from this optimal combination (Summation of the five times

of marginal benefits)? Show your calculation and answer.

C) Draw the Graph to illustrate your selection: (with Marginal benefit as your Y-axis, and

each additional $100,000 investment as your X-axis)

D) What law can be explained by this graph?