Question

PART 1:

Those who suffer from allergies can take medicine to relieve their suffering. Without treatment, they will have 118 bad days per year. Generic drug G costs $76 for an annual prescription, while Brand name drug B costs $680. With drug G, most people suffer only 42 days of allergy symptoms, while drug B seems a bit better, usually reducing symptomatic days to just 38. What is the average cost per day of symptom relief with drug G? With drug B? What is the marginal cost per additional day of relief if a patient is switched from drug G to drug B?

Answers the following questions

1.a. Average cost per day of symptom relief with Drug G:
1.b. Average cost per day of symptom relief with Drug B:
1.c. Marginal cost per additional day of relief if a patient is switched from Drug G to Drug B: change in costs / change in days =

Answer 1

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