Question
A manufacturer has found that when m employees are working, the number of units of product produced per day is q= 10m + 4900
A manufacturer has found that when m employees are working, the number of units of product produced per day is q= 10m + 4900 - 700 The demand equation for the product is 8q+p - 19,300 = 0 where p is the selling price when the demand for the product is q units per day. (a) Determine the manufacturer's marginal-revenue product when m = 240. (b) Find the relative rate of change of revenue with respect to the number of employees when m = 240. (c) Suppose it would cost the manufacturer $400 more per day to hire an additional employee. Would you advise the manufacturer to hire the 241st employee? Why or why not?
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Introduction to Operations Research
Authors: Frederick S. Hillier, Gerald J. Lieberman
10th edition
978-0072535105, 72535105, 978-1259162985
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