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

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

Quizplus · Accepted Answer

The allocatively efficient level of output is where the marginal cost (MC) equals the marginal revenue (MR), which occurs at a quantity of 25 tickets sold (where the supply and demand curves intersect). At this quantity, the price of a ticket is $10 (where the quantity demanded equals the quantity supplied). Therefore, the total revenue received by the sellers is:

Total Revenue = Price x Quantity = $10 x 25 = $250

So, the correct answer is C) $250.

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