A Manager in Charge of New Product Development Can Hire

question 83

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:

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

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Definitions:

Market Research

The process of assessing the viability of a new service or product through techniques such as surveys, product testing, and analysis of consumer behavior.

Institutional Advertising

Advertising aimed at promoting a company's image or reputation rather than marketing a specific product or service.

Reminder Advertisements

Advertising campaigns designed to keep a brand or product in the minds of consumers, reinforcing awareness.

Previous Knowledge

The information or understanding that a person already has before learning something new or encountering new situations.