[arnoix]

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?