Use the Following Information to Answer the Following Questions: the Accompanying

question 37

Multiple Choice

Use the following information to answer the following 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.

-ECON-Jammin' has recently discovered that its fans are made up of two distinct groups that can be easily distinguished.The band has decided to utilize its economic knowledge and offer a high-priced ticket of $40 per person and a low-priced ticket of $20 per person.Based on this information,what is the net revenue earned by the sales of the high-priced ticket?

• A) $500
• B) $300
• C) $250
• D) $200
• E) $150

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Definitions:

Deposit Method

A method of accounting used for transactions where the receipt or payment of money precedes the delivery of goods or services, recognizing the transaction when the delivery occurs.

Revenue Recognition

The guideline in accounting that determines the precise situations where revenue should be recognized or reported.

Future Event

An occurrence or situation that has not yet happened but is anticipated or expected to occur in the course of business or life.

Accounts Receivable

Amounts owed to a business by its customers for goods or services delivered on credit.