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A public health department is considering five alternative programs to encourage parents to have their preschool children vaccinated against a communicable disease. The following table shows the cost and number of vaccinations predicted for each program.
Program
Cost
Number of Vaccinations
A
$ 20,000.00
2000
B
$ 44,000.00
4000
C
$ 72,000.00
6000
D
$ 112,000.00
8000
E
$ 150,000.00
10000
a. Ignoring issues of scale, which program is most cost-effective?
b. Assuming that the public health department wishes to vaccinate at least 5,000 children, which program is most cost-effective?
c. If the health department believes that each vaccination provides social benefits equal to $20, then which program should it adopt?
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