Question
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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.

Ask by Fernandez Byrd. in the United States
Mar 12,2025

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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.

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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?

is expected to be positive. This means that as revenue increases, the number of full-time employees also increases. A higher revenue generally indicates a growing company where more employees are needed to handle increased business activity. Thus, there’s a positive correlation between revenue and the number of employees.

(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.

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