Suppose that the total revenue realized by the Odyssey Travel Agency is R=f(x) thousand dollars if x thousand dollars are spent on advertising.
What does
measure? What are the units?
What does f'(x) measure? Give units.
Given that f'(20)=3 what is the approximate change in the revenue if Odyssey increases its advertising budget from $20,000 to $21,000?
1. f(b)-f(a)/b-a measures rate of change of revenue from "a" thousand dollars to "b" thousand dollars.
f(x) has unit=thousand dollars
x also has unit=thousand dollars
So, unit of f(b)-f(a)/b-a is thousand dollars per thousand dollars.
2. f'(x) means instantaneous rate of change of revenue when x thousand dollars were spent ...
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