A Manager in Charge of New Product Development Can Hire

Multiple Choice

A manager in charge of new product development can hire engineers and market researchers. The annual salary of an engineer is $40,000 while a market researcher receives $20,000. The marginal contribution of engineers and market researchers are:

$\begin{array}{cccc}\text { Engineers }(E) &&\text { Market Researchers }(R) \\& \text { Additional } & & \text { Additional } \\\text { Worker } & \text { NewProducts } & \text { Worker } & \text { NewProducts } \\\hline1^{\text {st }} & 240 & 1^{\text {st }} & 80 \\2^{\text {nd }} & 200 & 2^{\text {nd }} & 70 \\3^{\text {rd }} & 160 & 3^{\text {rd }} & 60 \\4^{\text {th }} & 100 & 4^{\text {th }} & 50 \\5^{\text {th }} & 40 & 5^{\text {th }} & 40\end{array}$
-If the manager has an annual budget of $140,000 and currently is hiring two engineers and three market researchers, then

A) the last dollar spent on an engineer yielded more new products than the last dollar spent on a market researcher.
B) the last dollar spent on a market researcher yielded more new products than the last dollar spent on an engineer.
C) he is making the correct decision because engineers make more than market researchers.
D) he is making the correct decision because the last market researcher hired was more productive than the last engineer hired.