A Portrait Photographer Produces Output in Packages of 100 Photos

question 142

Multiple Choice

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.

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Definitions:

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the tangible machinery and production equipment used in environments such as factories.

Tangible Capital

Physical assets possessed by a business that are used in producing goods or services, such as buildings or machinery.

Inventory

The total amount of goods or materials contained in a store or factory at any given time.

Human Capital

Pertains to the abilities, expertise, and experiences held by a person or a group, considered in relation to their worth or expense to a company or nation.