Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 21 - Health Care - Problems - Page 453: 3b

Answer

Total averted expenses: ${$5,000}$ Loss: ${$5,000}$

Work Step by Step

Now only 5 people will test positive, the future treatment averted will be $5\times 1,000=5,000$. With a total cost of ${$10,000}$ from part a, and averted expenses of ${$5,000}$, it will lose ${$5,000-10,000=-5,000}$.
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