Question

(5-a) 17 Marks) A manufacturer who employs m workers finds that they produce q=(2m + 3)(19 + 30m) units of products per day. If the demand equation for the product is p= 1, determine the marginal revenue product when m = 5? (5-b) (5 Marks) Find the point of elasticity of the demand equation p = 360e-9/60 for q = 60, and determine whether the demand is elastic, inelastic, or has unit elasticity

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Answer 1

sol 562 Given plata: - - Cam-3) (19+30m2- pirts 29,73 m=5 equire o substitute in equn P = slemt, [1930 m] +3 50 4m Amt6 +3 19+30m 507 19+30m P Amt6 +37 19+30m - - - - Revenue a price xquantity = pxq 7. ranit3 150/19 tom Amt673/ 19+30m ] Rem) z 50(2m+3) Am+6+3/1945om

100m +150 4m+6 +3/19+30m Marginal gevenue = R'CM) um tot 3 19+30m loom15 *l to +3* * Rim) = [4m+6+ 3/19450m] * [100*1 +0] _[ loom+150 ] * [4*1 +0+3+ * * (0430] [am+6 + 3/19-tom? Rém) = 100 [4m+6 +3/-60w ]- [too m 450 ] [4+ 49.pm] [4m+6 43/ Anem? where m=5; -m=5; Substitute substi in the above equn R'cs) = 100 [4x5+6+3/1943D45] - [100x5+50] [ 44 679 130x5 ] [445+6+3, 19+30*5] 2 100 [20+6+3/169]- 650 [4+ (20 + 6 +3,169 } 100[26734137 – 650[4+ 45/13] - [26+3*137² = 100 [65] –650[7.463/854 i 6500- 4850 165 a 1650 1658 R!(5) 0.3905