1. Determine the following before deciding a prescription: (a) maximize effectiveness at the least cost; (b) maximize effectiveness at a fixed cost of $10,000; (c) achieve a fixed-effectiveness level of 6,000 units of service at a fixed cost of $20,000; (d) maximize net benefits, assuming that each unit of service has a market price of $10; (e) maximize the ration of benefits to costs, assuming that each unit of service has a market price of $10.
2. Determine which of the two main programs (Program I and Program II) should be selected under each of these criteria. Justify your position.
3. Describe the conditions under which each criterion may be an adequate measure of the achievement of objectives.