A Manager in Charge of New Product Development Can Hire

question 17

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:

$\begin{array}{cccc}\text { Engineers }(E) &&\text { Market Researchers }(R) \\&\text { Additional }&&\text { Additional }\\\text { Worker } & \text { NewProducts } & \text { Worker } & \text { NewProducts }\\1^{\text {st }} & 50 & 1^{\text {st }} & 20 \\2^{\text {nd }} & 40 & 2^{\text {nd }} & 15 \\3^{\text {rd }} & 30 & 3^{\text {rd }} & 10 \\4^{\text {th }} & 20 & 4^{\text {th }} & 5 \\5^{\text {th }} & 10 & 5^{\text {th }} & 2\end{array}$
-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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