1. Determine the following before deciding a prescription:
(a) Maximize effectiveness at the least cost; Problems of this type involve variable costs and variable effectiveness. For instance, the choice of a most favorable budget to make the most of the accomplishment of agency objectives is a type III problem. The reaction to type III problems is called variable-cost-variable-effectiveness examination.
(b) Maximize effectiveness at a fixed cost of $10,000; when maximum acceptable budgetary expenditure