A new manager of a children's services program is assigned the task of administering two ongoing programs; one that provides immunizations and one that provides diabetes screening. The total amount she can spend is $60,000. The following table shows the expenditures and benefits of the two programs. (HINT: What are the cost/opportunity cost of the programs).
Immunization Program Screening Program Expenditures Benefits Expenditures Benefits 10,000 60,000 10,000 20,000 20,000 90,000 20,000 40,000 30,000 115,000 30,000 60,000 40,000 135,000 40,000 80,000 50,000 150,000 50,000 100,000
Question: A nurse urges the new manager to increase the level of spending in the immunization program $50,000 because of a prevailing unmet need. How should the new manager respond to the nurse's request?
A new manager of a children's services program is assigned the task of administering two ongoing programs; one that provides immunizations and one that provides diabetes screening. The total amount she can spend is $60,000. The following table shows the expenditures and benefits of the two programs. (HINT: What are the cost/opportunity cost of the programs).
| Immunization Program | Screening Program | ||
| Expenditures | Benefits | Expenditures | Benefits |
| 10,000 | 60,000 | 10,000 | 20,000 |
| 20,000 | 90,000 | 20,000 | 40,000 |
| 30,000 | 115,000 | 30,000 | 60,000 |
| 40,000 | 135,000 | 40,000 | 80,000 |
| 50,000 | 150,000 | 50,000 | 100,000 |
Question: A nurse urges the new manager to increase the level of spending in the immunization program $50,000 because of a prevailing unmet need. How should the new manager respond to the nurse's request?
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A new manager of a children's services program is assigned the task of administering two ongoing programs; one that provides immunizations and one that provides school lunches. The total amount she can spend is $60,000. The following table shows the expenditures and benefits of the two programs:
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Questions:
(1) The previous manager allocated the $60,000 evenly between the two programs. What was the total benefit? Is this the optimal allocation? Why or why not? What would the new manager do if this is not the optimal allocation?
(2) A nurse urges the new manager to increase the level of spending in the immunization program $50,000 because of a prevailing unmet need. How should the new manager respond to the nurses' request?
