Multiple Choice
The accompanying table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities.
The Chair of the Economics Department at State U says that fundraising employees should be hired as long as their marginal benefit exceeds their marginal cost. If the University follows this advice, then ________ employee(s) will hired, and the net benefit (total donations minus total labor costs) will be ________.
A) 1; $22,000
B) 2; $25,426
C) 3; $25,426
D) 2; $3,476
Correct Answer:

Verified
Correct Answer:
Verified
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