-The Chairman of the Economics Department at What's A Matter U says that fundraisers should be hired as long as their marginal donations exceed their marginal labour costs.Following this criterion,__________ employees are hired and the "net benefit" (total donations minus total labour costs)is __________.
A) 1;$22,000
B) 2;$25,426
C) 3;$25,426
D) 2;$3,476
E) 2;$42,426

Question

-The Chairman of the Economics Department at What's A Matter U says that fundraisers should be hired as long as their marginal donations exceed their marginal labour costs.Following this criterion,__________ employees are hired and the "net benefit" (total donations minus total labour costs)is __________.
A) 1;$22,000 
B) 2;$25,426 
C) 3;$25,426 
D) 2;$3,476 
E) 2;$42,426

Quizplus · Accepted Answer

The criterion for hiring is that marginal donations should exceed marginal labor costs. The net benefit is calculated as total donations minus total labor costs. Based on the given options, hiring 2 employees results in a net benefit of $25,426.

-The Chairman of the Economics Department at What's a Matter