Use the following information to answer the questions:
The accompanying figure depicts the demand (D) curve for general admission concert tickets to see ECON-Jammin', the world's first economics rock band, which is scheduled to visit your city next month. The concert venue can accommodate 100 fans with a marginal cost (MC) of $10 per person.
-If ECON-Jammin' charges a single price to see its band in concert and follows the profit-maximizing rule for the perfectly competitive firm, how much net revenue will be generated?

Question

Use the following information to answer the  questions:
The accompanying figure depicts the demand (D) curve for general admission concert tickets to see ECON-Jammin', the world's first economics rock band, which is scheduled to visit your city next month. The concert venue can accommodate 100 fans with a marginal cost (MC) of $10 per person. 
-If ECON-Jammin' charges a single price to see its band in concert and follows the profit-maximizing rule for the perfectly competitive firm, how much net revenue will be generated?

Quizplus · Accepted Answer

In a perfectly competitive market, the profit-maximizing rule is to set the price equal to marginal cost. The net revenue is calculated based on this price and the quantity sold, which in this case results in $400.

Use the Following Information to Answer the Questions