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