Marginal analysis to evaluate proposal

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Madison County currently allocates $400,000 to provide a special ambulance service for heart-attack victims and $1,200,000 for improvements in highway safety (better lighting, grading, and the like). The former program saves an estimated 20 lives per year, the latter saves 40 lives. A member of the city council has proposed that the ambulance budget should be increased by 30 percent and the highway safety budget should be cut by 10 percent. Use marginal analysis to evaluate this proposal.

Reference no: EM133067379

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