A Manager in Charge of New Product Development Can Hire

question 84

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 contributions of engineers and market researchers are: Based on the above information,how should the manager with an annual budget of $160,000,allocate this budget in order to maximize the number of new products developed?

• A)Hire 2 engineers and 1 market researcher.
• B)Hire 3 engineers and 2 market researchers.
• C)Hire 4 engineers and 3 market researchers.
• D)Hire 4 engineers and 1 market researcher.

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Definitions:

Nuts

Hard-shelled seeds of certain plants that are generally edible and nutritious, often eaten raw, roasted, or used as ingredients in cooking.

Berries

Small, pulpy, and often edible fruits, typically juicy, rounded, brightly colored, and seed-containing, consumed worldwide in various forms.

Utility Function

A mathematical representation of how individual preferences or consumption bundles yield levels of satisfaction or utility.

Budget Constraint

A representation of all the combinations of goods and services a consumer can afford to buy given their income and the prices of the goods.