2 Viral Outbreak Viral fragments have been detected in a local waste-water sample. The virus may turn out to be either highly infectious, moderately infectious or not infectious. The government must decide whether or not to place the local area into a two week lockdown. Without a lockdown the cost to the local economy is $800M (M=million) for a highly infectious virus, $150M for a moderately infectious virus, or $20M for a not infectious virus. Implementing a two week lockdown has a cost of $200M to the local economy in addition to $80M if the virus is highly infectious, $10M if the virus is moderately infections, or $1M if the virus is not contagious. You are appointed as an adviser to the government on this decision.
2 Viral Outbreak Viral fragments have been detected in a local waste-water sample. The virus may turn out to be either highly infectious, moderately infectious or not infectious. The government must decide whether or not to place the local area into a two week lockdown. Without a lockdown the cost to the local economy is $800M (M=million) for a highly infectious virus, $150M for a moderately infectious virus, or $20M for a not infectious virus. Implementing a two week lockdown has a cost of $200M to the local economy in addition to $80M if the virus is highly infectious, $10M if the virus is moderately infections, or $1M if the virus is not contagious. You are appointed as an adviser to the government on this decision.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A, B and C please
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