
Calculus Calculus Math Forum 
 LinkBack  Thread Tools  Display Modes 
October 10th, 2017, 08:33 PM  #1 
Newbie Joined: Oct 2017 From: Surrey Posts: 5 Thanks: 0  Derivatives: Chain Rule  Marginal Revenue Product
I am having trouble with part c of this question. I have already solved A and B but if someone could help me with part c I would greatly appreciate it. A factory owner who employs m workers finds they produce q=1.2m(1.2m+46)^3/2 units of product per day The total revenue R in dollars is R= 586q / (245520+5q)^1/2 a) From the fact that revenue =(price per unit)(number of units) it follows that R=(price per unit)q So when there are 15 workers, the price per unit is 1.0852 dollars. b) When there are 15 workers, the marginal revenue is 1.00 dollars/(one unit of product). c) The marginalrevenue product is defined as the rate of change of revenue with respect to the number of employees. Therefore marginalrevenue product=dR/dm If q and R are given as above then, when m= 15, the marginalrevenue product is ______ dollars/(one worker). This means that if employee number 16 is hired, revenue will increase by approximately ______ dollars per day. Last edited by canucks543; October 10th, 2017 at 08:36 PM. 
October 10th, 2017, 08:55 PM  #2 
Senior Member Joined: Sep 2015 From: USA Posts: 1,763 Thanks: 905 
$\dfrac{dR}{dm} = \dfrac{dR}{dq} \dfrac{dq}{dm}$ each of those derivatives is messy but straightforward. yell back if you need help with them. 

Tags 
chain, derivatives, marginal, product, revenue, rule 
Thread Tools  
Display Modes  

Similar Threads  
Thread  Thread Starter  Forum  Replies  Last Post 
Derivatives: Chain Rule  Marginal Revenue Product  theguest  Calculus  2  June 15th, 2017 08:15 AM 
Derivatives: Chain Rule  Marginal Revenue Product  green21317  Calculus  1  February 3rd, 2014 04:05 AM 
Calculus:Chain Rule  Marginal Revenue Product  li1995717  Calculus  2  October 2nd, 2013 08:31 PM 
Calculus:Chain Rule  Marginal Revenue Product  Oranges'n'Lemons  Calculus  2  February 17th, 2013 11:18 PM 
Calculus:Chain Rule  Marginal Revenue Product  Oranges'n'Lemons  Economics  0  December 31st, 1969 04:00 PM 