There are two different meanings of the superscript $ ^ { - 1 } $ here: when applied to an expression for a function, it means the inverse function; when applied to an expression for a number, it means the reciprocal. So $ f ^ { - 1 } ( y ) $ means to apply the inverse function of $ f $ to the number $ y $, while $ f ( y ) ^ { - 1 } $ means the reciprocal of the number $ f ( y ) $. If you throw derivatives in there, then $ ( f ^ { - 1 } ) ' ( y ) $ means that you take the inverse function of $ f $, differentiate that inverse function, and then apply that derivative to $ y $; while $ f ' ( y ) ^ { - 1 } $ means that you differentiate the original function $ f $, then apply that derivative to $ y $, then take the reciprocal of the result.
Since the reciprocal can also be written using a division symbol, I think that it would be less confusing to write $ 1 / f ( y ) $ or $ \frac 1 { f ( y ) } $ instead of $ f ( y ) ^ { - 1 } $. Then the rule for differentiating an inverse function becomes $$ ( f ^ { - 1 } ) ' ( y ) = \frac 1 { f ' ( f ^ { - 1 } ( y ) ) } $$ which might make more sense. If $ y = f ( x ) $, so that $ f ^ { - 1 } ( y ) = x $, then you can also write this rule as $$ ( f ^ { - 1 } ) ' ( y ) = \frac 1 { f ' ( x ) } $$ if you prefer.
^{-1}
instead of^-1
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