Thinking about a diagnostic test such as breast cancer scree

Thinking about a diagnostic test such as breast cancer screening, describe what it means to increase the use of the test (1) on the intensive margin and (2) on the extensive margin

Solution

Increasing diagnostic test using the intensive margin means that the population of patients would be offered these services frequently. Apart from women receiving mammogram annually, they would be offered mammogram every six months. Increasing the frequency will do enough good to outweigh additional costs.

Extensive diagnostic tests are offering mammograms to a larger demographic population which can be measured with the extensive margin. If mammograms are paid 100 percent for women over the age of 40 could now be extended to all women over the age of 25. Intensive and extensive margins measure the direct costs that are involved with the effects of patient care.

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