Question 7

10 Points

The National Institute of Health conducted a study to test male birth control pills by using two groups of mice as the study participants. Group A received a drug called Nokids which cost $20,000 and Group B received a drug called Noparents which cost $5,000. The administrative cost to administer each drug is $500 a day. Group A received the drug for 10 days and Group B received the drug for 14 days. What is the incremental cost of Nokids?

While conducting the experiment the researchers learned that both medications were contaminated with a poisonous substance. Group A had a survival rate (incremental effectiveness) of 18 days while Group B had a survival rate (incremental effectiveness) of 14 days.

Using the scenario above, which medication has the highest incremental cost

a. Nokids

b. Noparents

c. The incremental cost is the same for both medications

d. It is not possible to calculate both incremental costs from the provided information.