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A Manager in Charge of New Product Development Can Hire

Question 24

Multiple Choice


A manager in charge of new product development can hire engineers and market researchers. The annual salary of an engineer is $30,000 and that of a market researcher is $20,000. The marginal contribution of engineers and market researchers are

 Engineers (E)  Market Researchers (R)  Additional  Additional  Worker  NewProducts  Worker  NewProducts 1st 501st 302nd 302nd 253rd 153rd 204th 104th 155th 85th 10\begin{array}{cccc}\text { Engineers }(E) &&\text { Market Researchers }(R) \\&\text { Additional }&&\text { Additional }\\\text { Worker } & \text { NewProducts } & \text { Worker } & \text { NewProducts }\\1^{\text {st }} & 50 & 1^{\text {st }} & 30 \\2^{\text {nd }} & 30 & 2^{\text {nd }} & 25 \\3^{\text {rd }} & 15 & 3^{\text {rd }} & 20 \\4^{\text {th }} & 10 & 4^{\text {th }} & 15 \\5^{\text {th }} & 8 & 5^{\text {th }} & 10\end{array}
-If the manager currently has two engineers and one market researcher, what must be true?


A) He is making the correct decision because
B) He is not making the correct decision because
C) Fewer new products will be developed if he hires fewer engineers and more market researchers.
D) More new products will be developed if he hires fewer engineers and more market researchers.

Correct Answer:

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