Medical Application
A neurology practice is interested in investing in a new piece of equipment, an electromyogram
(EMG) machine, which would be used for nerve conduction testing. The new EMG machine
would cost $20,000. The practice estimates that with the machine it would be able to perform 20
EMGS per month and charge $500 for each testing. However, the practice budgeted to give
raises to its five employees this year, which would be $90,000. Based on the utilitarianism
theory, what would be the best option? What would be the cost-benefit analysis to purchasing
the machine versus giving raises to the employees instead?

We have to know that the neurology practice is also a business venture. As such, the economic implication of the decisions of the establishment are of paramount importance.

Now we know that the utilitarianism theory raises the value of the actions that bring happiness over those that brings sadness. Hence this theory would opt that the raise should be given to the worker rather than purchasing the machine.'

On the other hand, looking at a cost - benefit perspective, it is better to buy the machine because it generates funds that could be used for the pay raise of the employees at a latter time.

Learn more about cost - benefit analysis:https://brainly.com/question/15411875

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