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Posted: February 24th, 2022

Economics

 

The accompanying table 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.

Complete the following:

Calculate the total value of donations raised by three employees, and explain the method you used to make this calculation.
Calculate the total labor cost with four employees, and explain the method you used to make this calculation.
Analyze the relationship between average benefits and average costs by filling in the blanks in the following statement:
If the President of State U decides to hire fundraising employees as long as their average benefit exceeds their average cost, then this results in ________ employees being hired and a net benefit (total donations minus total labor costs) of ________.
Evaluate the marginal benefit (in terms of extra donations) of the 2nd employee.
Explain how the marginal cost of the 4th employee will increase the total labor cost.
Determine when the net benefit of hiring fundraisers is the largest.

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