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:

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

Question

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:

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

Quizplus · Accepted Answer

The Answer of  
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:

$\begin{array}{cccc}
\text { Engineers }(E)&&\text { Market Researchers }(R)\
& \text { Additional } & & \text { Additional } \
\text { Worker } & \text { NewProducts } & \text { Worker } & \text { NewProducts } \\hline
1^{\text {st }} & 240 & 1^{\text {st }} & 80 \
2^{\text {nd }} & 200 & 2^{\text {nd }} & 70 \
3^{\text {rd }} & 160 & 3^{\text {rd }} & 60 \
4^{\text {th }} & 100 & 4^{\text {th }} & 50 \
5^{\text {th }} & 40 & 5^{\text {th }} & 40
\end{array}$
-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 Manager in Charge of New Product Development Can Hire