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February 2nd, 2014, 11:53 PM  #1 
Newbie Joined: Feb 2014 Posts: 9 Thanks: 0  Derivatives: Chain Rule  Marginal Revenue Product
I solved part a and b but I am confuse with part c. Is there any one who can help me?? A factory owner who employes m workers finds that they produce q=1.4m(1.4m+50)^(3/2) units of product per day. The total revenue R in dollars is R=754q/(255760+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 10 workers, the price per unit is 1.3963 dollars. (b) When there are 10 workers, the marginal revenue is 1.31 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= 10, the marginalrevenue product is___________ dollars/(one worker). This means that if employee number 11 is hired, revenue will increase by approximatel______ dollars per day. 
February 3rd, 2014, 03:05 AM  #2 
Senior Member Joined: Sep 2007 From: USA Posts: 349 Thanks: 67 Math Focus: Calculus  Re: Derivatives: Chain Rule  Marginal Revenue Product
IN part c you can use the chain rule. Or, you can put q in terms of m in the equation R=... and differentiate when R is a function of m instead of q. 

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