The diagram below shows supply,demand,and quantity exchanged of Monday matinee movie tickets.Assume it is a perfectly competitive market.
FIGURE 12- 4
-Refer to Figure 12- 4.What is the total revenue received by the sellers of this product at the allocatively efficient level of output?
A)$500
B)$125
C)$375
D)$5
E)$250

Question

The diagram below shows supply,demand,and quantity exchanged of Monday matinee movie tickets.Assume it is a perfectly competitive market.
  FIGURE 12- 4
-Refer to Figure 12- 4.What is the total revenue received by the sellers of this product at the allocatively efficient level of output?
A)$500 
B)$125 
C)$375 
D)$5 
E)$250

Quizplus · Accepted Answer

The allocatively efficient level of output is where marginal cost equals marginal benefit (price). The total revenue is calculated by multiplying the price by the quantity at this level.

The Diagram Below Shows Supply,demand,and Quantity Exchanged of Monday Matinee