A Manager in Charge of New Product Development Can Hire

question 102

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 contribution of engineers and market researchers are:

$\begin{array}{cccc}\text { Engineers }(E) &&\text { Market Researchers }(R) \\& \text { Additional } & & \text { Additional } \\\text { Worker } & \text { NewProducts } & \text { Worker } & \text { NewProducts } \\\hline1^{\text {st }} & 240 & 1^{\text {st }} & 80 \\2^{\text {nd }} & 200 & 2^{\text {nd }} & 70 \\3^{\text {rd }} & 160 & 3^{\text {rd }} & 60 \\4^{\text {th }} & 100 & 4^{\text {th }} & 50 \\5^{\text {th }} & 40 & 5^{\text {th }} & 40\end{array}$
-If the manager has an annual budget of $140,000 and currently is hiring two engineers and three market researchers, then

• A) the last dollar spent on an engineer yielded more new products than the last dollar spent on a market researcher.
• B) the last dollar spent on a market researcher yielded more new products than the last dollar spent on an engineer.
• C) he is making the correct decision because engineers make more than market researchers.
• D) he is making the correct decision because the last market researcher hired was more productive than the last engineer hired.

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Definitions:

Distance

The length of the shortest path between two points, often measured in units such as meters or miles.

System Of Linear Equations

A set of equations with two or more variables where each equation is linear.

Augmented Matrix

A matrix obtained by appending the columns of two given matrices, typically representing a system of linear equations.

Linear Equations

Equations between two variables that give a straight line when plotted on a graph.