Economics & Management :Scarcity, Choice and Opportunity Cost

 Topic: Scarcity, Choice and Opportunity Cost

"Dialysis machines are used for patients who have kidneys that don’t work properly. Without dialysis, the patients would quickly die. They are expensive costing about $ 1,00,000. Some patients can get a kidney transplant, which means they won’t need dialysis any longer."

A hospital in a town has one dialysis machine that can run for 30 hours per week. As the boss of the hospital, you must decide who gets the treatment.

There are a number of patients who require treatment and their needs are given below:

Patient A: A 6-year-old child who needs 10 hours per week. They are awaiting a kidney transplant which is expected to occur in one year.

Patient B: A 55-year-old man who needs 5 hours per week. He is married with grown-up children.

Patient C: A 3-year-old child who needs dialysis indefinitely. Currently needs 4 hours per week.

Patient D: 78-year-old female needs 4 hours per week.

Patient E: 7-year-old child, has three brothers and sisters, 4 hours per week.

Patient F: 8-year-old child, no brothers, and sisters, 5 hours per week.

Patient G: 30-year-old female with two young children, 6 hours per week.

Patient H: 30-year-old male having two young children, 5 hours per week.

Patient I: 30-year-old male, no children, 4 hours per week.

Patient J: 45-year-old man with no children. Needs 6 hours per week but has a brother who

will donate a kidney. This will take place in six months’ time.

Patient K: A 65-year-old man who requires 10 hours per week. As he is quite wealthy, he has

promised to buy another dialysis machine for the hospital if he is still alive in one year’s time.

Decide how you will allocate the 30 hours optimally in order of preference and why (explain

giving your reason).

Answer:

These are the patients I would decide who receives the treatment of the dialysis machine and reasons why I have put them in order below:

1) Patient A who needs 10 hours since it seems they need the most time. It's also because they will get a transplant in a year so it's best to keep them alive as they wait for it.

2) Patient E who needs 4 hours a week because they're very young and have many siblings that would miss them.

3) Patient F who needs 5 hours a week because very young and don't have any other family besides their parents.

4) Patient G who needs 6 hours a week because they have two young children who need her very much.

5) Patient H who needs 5 hours a week because they have two young children as well.

Here are the reasons why I didn't choose the other patients:

1) Patient B, although he has children they are already grown up and doesn't need their parents anymore. However, maybe he could go to another hospital for treatment.

2) Patient C, although they are very young it's still unclear on whether they need I since their description said "indefinite".

3) Patient D, sadly due to her age it doesn't seem like she would have a lot of years left.

4) I would not give the dialysis machine to the patient I because he has no dependents.

5) Patient J, since it seems like he going to get a transplant soon it'd be best for him to not get the treatment. Also because he can go to a different hospital to get dialysis.

6) patient K, Although the offer of getting a new dialysis machine is pleasing I believe that since he's wealthy he could just go to a better hospital since he says he's able to afford a dialysis machine.