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

question 46

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,if the manager currently hires four engineers and one market researcher,what must be true?

• A)She is making the correct decision because \[M P _ { E } = M P _ { R }\] .
• B)More new products would be developed if she hires more engineers and fewer market researchers.
• C)More new products would be developed if she hires fewer engineers and more market researchers.
• D)She is not making the correct decision because engineers are more productive than market researchers at all levels of output. .