A Manager in Charge of New Product Development Can Hire

question 57

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:

$\begin{array}{cccc}\text { Engineers }(E) &&\text { Market Researchers }(R) \\& \text { Additional } & & \text { Additional } \\\text { Worker } & \text { NewProducts } & \text { Worker } & \text { NewProducts } \\\hline1^{\text {st }} & 240 & 1^{\text {st }} & 80 \\2^{\text {nd }} & 200 & 2^{\text {nd }} & 70 \\3^{\text {rd }} & 160 & 3^{\text {rd }} & 60 \\4^{\text {th }} & 100 & 4^{\text {th }} & 50 \\5^{\text {th }} & 40 & 5^{\text {th }} & 40\end{array}$
-How should a manager with an annual budget of $240,000, allocate this budget in order to maximize the number of new products developed?

• A) Hire three engineers and four market researchers.
• B) Hire three engineers and five market researchers.
• C) Hire five engineers and two market researchers.
• D) Hire four engineers and four market researchers.

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Definitions:

Liberal

A political ideology that emphasizes the need for the government to take active roles in the promotion of social welfare, support for civil rights, and protection of freedoms.

Libertarian

A political ideology that emphasizes individual liberty, free markets, minimal government intervention in the lives of citizens, and the protection of personal freedoms.

Conservative

A political and social ideology favoring the preservation of traditional institutions and values, along with cautiousness toward change and innovation.

Demographic Changes

Shifts in the composition of a population over time, including factors like age, race, and gender distributions.