Economics Homework Help

1 Estimate the base case cost of each alternative regarding the provision of ultrasound
services. (For now, ignore the discount if three units are purchased.)

2. Which alternative hasthe lower total cost?

3. What value for travel and set-up costs would make the costs of the two alternatives
thesame?

4. Now consider the 5 percent discount. What impact does this have on the decision?
What discount amount would make the two alternatives equal in costs?

5. Whatsubjective factors would influence the decision asto which alternative to choose?
6. What is your final-decision?