One study presented in the text calculated the cost per life-year saved for various medical interventions. For each of the scenarios that follow, determine whether the scenario represents diminishing marginal product of medical care. If it does, determine whether the diminishing marginal product is on the extensive or intensive margin. Please completely explain your answer to each scenario. a) Intervention: Pap Smear, Starting at the Age of 20, Continuing to 74. Every 3 years, compared to not screening: Cost per life year saved = $36,017 Every 2 years, compared to every 3 years: Cost per life year saved = $711,671 b) Intervention: Hypertension Screening 40-year-old males: Cost per life year saved: $41,279 40-year-old females: Cost per life year saved: $63,333
One study presented in the text calculated the cost per life-year saved for various medical interventions. For each of the scenarios that follow, determine whether the scenario represents diminishing marginal product of medical care. If it does, determine whether the diminishing marginal product is on the extensive or intensive margin. Please completely explain your answer to each scenario.
a) Intervention: Pap Smear, Starting at the Age of 20, Continuing to 74. Every 3 years, compared to not screening: Cost per life year saved = $36,017 Every 2 years, compared to every 3 years: Cost per life year saved = $711,671
b) Intervention: Hypertension Screening 40-year-old males: Cost per life year saved: $41,279 40-year-old females: Cost per life year saved: $63,333
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