Question

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 ______.

Answer 1

Hence, the table is missing in this question. I have attached it in a word file.

Answer:

2  , $25,426

Explanation:

According to the table, only the row of 2 employees has a higher marginal benefit (i.e. $12,426) than marginal cost (i.e. $9,000).

By following 2nd row:

Net benefit = Total donations - Total labor costs

Net benefit = $42,426 - $17,000

Net benefit = $25,426

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Answer 2

Answer:

2 employees; $25.426

Explanation:

The question was incomplete, made a research online and the missing part of the question is as follows:

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.

Number of Employees Total Donations Average Donations Total Labor Costs Average Labor Costs

1 $30,000 $8,000

2 $42,426 $17,000

3 $17,321 $27,000

4 $60,000 $9,500

5 $13,416 $50,000