The town of Wells has 50 restaurants, 49 of which employ chefs of average ability, who earn $200 per week, which is the usual market price for a chef.

Paying this salary, each of these 49 restaurants makes normal profit and collects $1,000 per week in total revenue. The 50th restaurant employs an unusually talented chef, and collects $1,500 per week in total revenue because consumers are willing to pay more for the meals he cooks. This chef’s weekly salary will be (LO3)

a. $500 per week.

b. $200 per week.

c. $700 per week.

d. $1,500 per week.

e. None of the above.