Question
The table below shows us the results of total marginal benefits from different combination of program selection. If only $500,000 budget available for the public
The table below shows us 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.
Total Marginal benefits
Project A Project B Project C Project D Project E
Cost Total Benefit Total Benefit Total Benefit Total Benefit Total Benefit
100,000 $280 $340 $320 $280 $310
100,000 430 570 590 530 590
100,000 510 620 660 590 680
100,000 565 680 710 660 725
100,000 620 730 750 710 760
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?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started