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  3. let total revenue r be a function of the output...

Question: let total revenue r be a function of the output...

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Let total Revenue R be a function of the output rate y of a firm. Furthermore, let the output rate be a function of the labor L used by the firm.

a.) write down the relationship between R and y and that between y and L.

b.) write down the composite relationship between R and L.

c.) What is the economic interpretation of the function?

d.) Derive an expression for how R changes with L.

e.) Provide an economic interpretation of the result in part d.

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