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| 1. |
Why is the total revenue curve of a price-taking firm an upward-sloping straight line ?Why does the curve pass through the origin ? |
| Answer» Solution :In case of PRICE-taking firm (perfectly COMPETITIVE firm), TR increases in the same proportion as price is constant. So, TR curve is an upward sloping STRAIGHT line. It PASSES from the origin because TR is zero at zero LEVEL of output. | |