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Preventive care is not always cost-effective. Suppose that it costs $50 per person to administer a screening exam for a particular disease. Also suppose that if the screening exam finds the disease, the early detection given by the exam will avert $500 of costly future treatment. a. Imagine giving the screening test to 100 people. How much will it cost to give those 100 tests? $ . Imagine a case in which 15 percent of those receiving the screening exam test positive. How much in future costly treatments will be averted? $ . How much is saved by setting up a screening system? $ . b. Imagine that everything is the same as in part a except that now only 5 percent of those receiving the screening exam test positive. In this case, how much in future costly treatments will be averted? $ . How much is lost by setting up a screening system? $.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M91870115

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