A public health department is considering five alternative programs to encourage parents to have their preschool children vaccinated against a communicable disease. The following table shows the cost and number of vaccinations predicted for each program.
|
Program
|
Cost
|
Number of Vaccinations
|
|
A
|
$ 20,000.00
|
2000
|
|
B
|
$ 44,000.00
|
4000
|
|
C
|
$ 72,000.00
|
6000
|
|
D
|
$ 112,000.00
|
8000
|
|
E
|
$ 150,000.00
|
10000
|
a. Ignoring issues of scale, which program is most cost-effective?
b. Assuming that the public health department wishes to vaccinate at least 5,000 children, which program is most cost-effective?
c. If the health department believes that each vaccination provides social benefits equal to $20, then which program should it adopt?