Economics

Suppose a policy maker is deciding whether to adopt a policy A, B, C, or D to reduce smoking addiction. Which would be the rational choice?

Policy Effectiveness (# quit) Value (price x Effectiveness) Costs A 1,000 $10,000 $6,000 10,000 $100,000 $50,000 C 12,000 $110,000 $70,000 D 15,000 $120,000 $145,000 A: B/C = $10,000/$6,000=1.67 B: B/C=$100,000/$50,000=2 C: B/C=$110,000/$70,000=1.57 DB/C = $120,000/$145,000 = 0.83