My Math Forum Derivatives: Chain Rule - Marginal Revenue Product

 Calculus Calculus Math Forum

 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 marginal-revenue product is defined as the rate of change of revenue with respect to the number of employees. Therefore marginal-revenue product=dR/dm If q and R are given as above then, when m= 10, the marginal-revenue 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. $\frac{dR}{dm}=\frac{dR}{dq}\cdot\frac{dq}{dm}$ 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.

 Tags chain, derivatives, marginal, product, revenue, rule

,

,

### chain and wainwright economics 1st and 2nd derivatives

Click on a term to search for related topics.
 Thread Tools Display Modes Linear Mode

 Similar Threads Thread Thread Starter Forum Replies Last Post li1995717 Calculus 2 October 2nd, 2013 07:31 PM Oranges'n'Lemons Calculus 2 February 17th, 2013 10:18 PM pomazebog Calculus 3 February 7th, 2012 11:52 PM ProJO Calculus 4 February 5th, 2011 11:15 PM Oranges'n'Lemons Economics 0 December 31st, 1969 04:00 PM

 Contact - Home - Forums - Cryptocurrency Forum - Top