A Manager in Charge of New Product Development Can Hire $$M P _ { E } = M P _ { R }$$

question 33

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 Given the above information,if the manager currently has two engineers and one market researcher,what must be true?

• A)He is making the correct decision because \[M P _ { E } = M P _ { R }\] .
• B)He is not making the correct decision because \[M P _ { E } / P _ { E } > M P _ { R } / P _ { R }\] .
• 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.

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Definitions:

Future Business Activity

Predictions or estimations about the levels of commercial, industrial, or professional operations and engagements in the upcoming period.

Keynesian Model

An economic theory stating that active government intervention is necessary to manage economic fluctuations and stimulate demand during downturns.

Money Supply

The sum of all funds available in an economy, including cash, coins, and checking and savings account balances, at a particular point in time.

Foreign Exports

Products or services that are manufactured in one nation and purchased by consumers in a different country.