Consider a hypothetical three-stage screening test for a cancer with the following rates of detection and costs:

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Consider a hypothetical three-stage screening test for a cancer with the following rates of detection and costs: image text in transcribed

(a) Calculate the average cost per cancer detected in the three stages.

(b) Calculate the marginal cost per cancer detected in the three stages.

(c) Suppose that the marginal benefi t per treated case is $12,000 per person. What would be the optimal screening, given the costs?

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The Economics Of Health And Health Care

ISBN: 9781138208049

8th Edition

Authors: Sherman Folland, Allen C. Goodman, Miron Stano

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Question Posted: Jan 29, 2024 03:06 AM

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Consider a hypothetical three-stage screening test for a cancer with the following rates of detection and costs:

Question:

Stage 123 Number of Cases Detected 100 105 106 Total Costs $200,000 260,000 300,000

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To calculate the average cost per cancer detected for each of the three stages and the marginal cost ...View the full answer

The Economics Of Health And Health Care

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