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Case Study: A study published in BMC Health Services Research in October 2008 considered the cost-effectiveness of assisting general practitioners in management of patients with diabetes by use of a centralized database of clinical data to coordinate care. Based on five years of data a simulation model was used to predict patient outcomes and complications up to the time of death.
The per-patient increase in costs due to the program were estimated to be $3,000. Quality-adjusted life years were calculated to be 8.5 years for those in the program and 8.2 years for those not in the program. A year of perfect health is felt to be worth $50,000.
Question:
(a) Perform a cost-benefit analysis of the program. What do you conclude? i.e is the program worthwhile or not ? (Hint MB Vs MC)
(b) Perform a cost-utility analysis of the program. What do you conclude? i.e is the program worthwhile or not?
On this question, the question isn't "what is the dollar profit", but "what is the profit maximizing quantity of output (i.e. Q)" So what you should do is
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Describe the relevant issues and their impact on the project. How would you handle addressing them with the customer who is requesting the change?
Exchange in an island economy.robin and terry are stranded on a deserted island and consume two products, coconut and fish. In a day, robin can catch 2 fish or gather 10 coconuts, and terry can catch 1 fish or gather 1 coconut.
Suppose a country has a national debt of $5,000 billion, a GDP of $10,000 billion, and a budget deficit of $100 billion.
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