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Just for context, it is a business theory - https://www.uc.edu/content/dam/uc/aess/docs/LACResources/MathMinuteWorksheets/15%20-%20L%27Hospital%27s%20Rule.pdf h
by clnq 4y ago
Just for context, it is a business theory - https://www.uc.edu/content/dam/uc/aess/docs/LACResources/MathMinuteWorksheets/15%20-%20L%27Hospital%27s%20Rule.pdf https://www.uc.edu/content/dam/uc/aess/docs/LACResources/Mat.... It can be applied to anything within a company's control that has marginal costs and associated marginal revenues.
How to apply it wisely is a different, much wider topic.
- AmericanChopper 4y agoOptimising the marginal cost of producing goods is very different from “keep hiring engineers until $1 of engineering payroll = $1 in return”. Which is specifically the claim made in the comment I replied to.
- clnq 4y agoIt is not very different, the same principle can be applied because of the MC-MR association. See here - https://en.wikipedia.org/wiki/Marginal_product_of_labor#MPL,_MRPL_and_profit_maximization https://en.wikipedia.org/wiki/Marginal_product_of_labor#MPL,....