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) $250
B) $125
C) $500
D) $375
E) $5

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) $250 
B) $125 
C) $500 
D) $375 
E) $5

Quizplus · Accepted Answer

At the allocatively efficient level of output, the price is $5 and the quantity is 50. Total revenue is price times quantity, or $5 x 50 = $250.

The Diagram Below Shows Supply, Demand, and Quantity Exchanged of Monday