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.
Cost Project A Project B Project C Project D Project E
100,000 $230 $310 $245 $270 $350
100,000 430 540 490 530 585
100,000 510 620 640 590 680
100,000 565 680 710 640 725
100,000 620 730 750 685 760
A) What will be the best choice of program combination to be selected? Please explain your steps and numbers.
B) What are 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?
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