The Accompanying Table Below Shows How Total Donations, Average Donations

question 67

Multiple Choice

The accompanying table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities.   
The Chair of the Economics Department at State U says that fundraising employees should be hired as long as their marginal benefit exceeds their marginal cost. If the University follows this advice, then ________ employee(s) will hired, and the net benefit (total donations minus total labor costs) will be ________. 

• A)1; $22,000
• B)2; $25,426
• C)3; $25,426
• D)2; $3,476

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Definitions:

Warner Music Group

A major global music company involved in the discovery, development, and dissemination of recorded music and publishing rights.

Universal Music Group

A global music corporation that operates a array of businesses engaged in recorded music, music publishing, and merchandising.

Hulu

A subscription-based streaming service offering a wide range of TV shows, movies, and original content, available primarily in the United States.

Verizon

An American multinational telecommunications company, known for its wireless products and services.