arnoix
Sep 25, 2016, 09:15 AM
Health Authority is considering expanding flu vaccine coverage to
Include staff families and relatives. If they did this, the annual fixed
Costs of the expanded coverage would be $40,000. Presently,
There is a charge of $2.00, of which $1.80 is the actual incremental cost of vaccinating per person, and $.20 is profit. At the current $2.00 charge there are 100,000 vaccinations a year. Planners know that the program expansion would make the real marginal cost equal to $.50 per vaccination. They expect
To charge an efficient price equal to the expected marginal
Cost, i.e. $0.50.
How do you calculate the quantity that results from the expanded program?
Include staff families and relatives. If they did this, the annual fixed
Costs of the expanded coverage would be $40,000. Presently,
There is a charge of $2.00, of which $1.80 is the actual incremental cost of vaccinating per person, and $.20 is profit. At the current $2.00 charge there are 100,000 vaccinations a year. Planners know that the program expansion would make the real marginal cost equal to $.50 per vaccination. They expect
To charge an efficient price equal to the expected marginal
Cost, i.e. $0.50.
How do you calculate the quantity that results from the expanded program?