Determining The Following Before Deciding A Prescription

1469 Words Aug 14th, 2015 6 Pages
1. Determine the following before deciding a prescription:
(a) Maximize effectiveness at the least cost; Problems like this involve variable costs and variable effectiveness. For instance, the choice of a most favorable budget to make the most of the accomplishment of agency and to help the agency perform to its potential is a type III problem. The reaction to type III problems is called variable-cost-variable-effectiveness examination.
(b) Maximize effectiveness at a fixed cost of $10,000; when maximum acceptable budgetary expenditure aims at fixed costs, the name of the game is to maximize effectiveness within the limits of existing resources. For instance, given a fixed budget of $10,000 million for both of two programs, any forecaster will recommend the option that results in answer to type I problems.
(c) Achieve a fixed-effectiveness level of 6,000 units of service at a fixed cost of $20,000; Problems of this type engross = costs as well as equivalent effectiveness. This is the situation which pertains Type IV problems, which are fixed cost and effectiveness analysis, are particularly not easy to solve. Analysts are not only restricted by the requirement that costs not exceed a certain level but are also restricted by the limitation that options satisfy a fixed level of effectiveness.
(d) Maximize net benefits, assuming that each unit of service has a market price of $10; Type 2 problems are the one which are visible. Problems like this always equal effectiveness and…
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