) 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 aims at fixed costs, the motto is to maximize effectiveness within the limits of existing resources. For instance, given a fixed budget of $10,000 million for both of two programs, a health policy forecaster will recommend the option that results in answer to type I problems.