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Considering that corona virus has imposed serious risk on health workers.

In the context of
marginal cost of precaution and marginal damage costs explore as many scenarios to
optimise the level of damage in African countries.
When marginal damage increases

When Marginal Damage Cost (MDC) is increased it leads to the MDC curve pivoting inwards to MDC 1,
showing an increase in the cost. Resultantly an increase in MDC adds to the total cost hence increasing
the total costs. However due to this increase in firms and individuals will turn to reducing the MDC by
looking into precautionary measures hence the level of damage will move from Q to Q* showing a
decrease in the level of damage. As the MDC increases people will move from the ways that increase
their MDC as it becomes costly for them.

When marginal precautionary costs increase

When the MPC increases, the MPC curve pivots inwards from MPC to MPC1 showing an
increase in the cost of precautionary measures. An increase in MPC adds to the total cost (TC),
as witnessed by an increase in TC from. The result will be an increase in MPC and TC, firms and
individuals will do away with investing in and taking precaution hence behaving recklessly, in
trying to minimize costs as they see precautionary measures as expensive, resultantly this moves
the level of Damage from Q to Q*

Simultaneous decrease in MDC & MPC

When MDC is reduced and MPC is reduced also, the MDC curve pivots outwards from MDC to
MDC1, on the other hand MPC curve pivots outwards from MPC to MPC1. In this case there will
be an unchanged in the level of damage, as it is now costly less to practice precaution and much
cheaper to do without, this unchanged level of damage as people are less vulnerable and
exposed to the effects of corona virus. However total cost also decreases as the marginal cost of
precaution decreases.
Simultaneous increase in MDC and MPC

When MDC and MPC are increased, the MDC curve pivots inwards from MDC to MDC1 and
MPC curve pivots inwards from MPC to MPC1 showing an increase in MDC and an also in MPC
respectively. As MPC increases firms will look more into taking less precaution and hence
increases the MDC in the process. As a result, the total cost reduces increases and level of
damage remains unchanged at from Q.

An increase in protective gear

As the price of protective clothing is increased, it means there is an increase in the Marginal
Precautionary Cost (MPC). Hence there is a pivot inwards on the MPC curve from MPC to
MPC1. Firms and individuals will find it more expensive to invest in protective clothing,
resultantly it will cause an increase in the level of damage from Q to Q*, as more people and the
environment becomes more exposed and vulnerable to corona virus. Also as the price of
protective clothing goes up, it means the Total Cost will increase from eventually.
An increase in penalties by government for those not practicing precaution

When penalties on people not taking precaution are increased, this means Marginal Damage Cost
(MDC) increases. Resultantly this means it becomes more expensive and costly for people and
firms to not take precautionary measures. As a result, people will look into practicing more
precaution so as to not be penalized by the government. Not taking precaution will increase total
cost from TC to TC*, hence people will practice more precaution and reduce the level of damage
from Q to Q*.

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