Question: Considering Program Expansion with Marginal Analysis. The state government has contacted HFA for additional ten new trainee spots which would expand the current career training
Considering Program Expansion with Marginal Analysis. The state government has contacted HFA for additional ten new trainee spots which would expand the current career training program to a total of sixty trainees. The average cost of the program is approximately $6,0000 per trainee a the current level of service; however the state is willing to pay $3,000 each for the ten extra spots, keeping the reimbursement rate for the fifty existing seats unchanged. The facility has the capacity for one hundred students and the number of existing teachers can handle sixty students. Should the HFA accept this offer from the state?
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