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:

Question

Quizplus · Accepted Answer

Marginal revenue per photo is calculated by the change in total revenue divided by the change in quantity sold. Here, the revenue increases by $200 ($1,400 - $1,200) when the quantity sold increases by 100 photos (700 - 600). Therefore, the marginal revenue per photo is $200 / 100 = $2.

A Portrait Photographer Produces Output in Packages of 100 Photos