A portrait photographer produces output in packages of 100 photos each. If the output sold increases from 600 to 700 photos, total revenue increases from $1,200 to $1,400. The marginal revenue per photo is:
A) $200.
B) $100.
C) $20.
D) $2.
E) $1.

Question

Quizplus · Accepted Answer

The increase in total revenue is $200 ($1,400 - $1,200) for an increase of 100 photos (700 - 600), so the marginal revenue per photo is $200/100 = $2.

A Portrait Photographer Produces Output in Packages of 100 Photos