Question
For a certain company, the relationship between revenue
(in billions of dollars) and the number of full-time employees
(in thousands) can be approximated by
.
(a) Would
be expected to be positive, negative or zero? Why?
(b) Find
. What are the units?
© Find
when
and
, and interpret the answer.
(a) Would
(b) Find
© Find
Ask by Fernandez Byrd. in the United States
Mar 12,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
(a)
is expected to be positive because as revenue increases, the number of employees also increases.
(b)
with units of thousands of employees per billion dollars.
© When
and
,
, meaning the company hires approximately 3,890 more employees for every additional billion dollars in revenue.
Solution

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To tackle this problem, we start with the given equation that relates revenue
to the number of full-time employees
:
(a) Would
be expected to be positive, negative or zero? Why?
(b) Find
. What are the units?
To find
, we can use implicit differentiation on the equation:
Differentiating both sides with respect to
:
This gives us:
Now, solving for
:
The units of
are
or
.
© Find
when
and
, and interpret the answer.
Substituting
and
into the equation we found:
Calculating
:
The value of
means that for every additional billion dollars in revenue, the company would expect to hire about 38.89 additional full-time employees (or 38,889 employees, since
is measured in thousands). This indicates a healthy growth scenario where revenue increases correlate with hiring more staff, reflecting business expansion and operational scaling.