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 :TR CURVES passes through the ORIGIN,because when output sold is ZERO , the TR of the firm is also zero. TR rises as the firm increases the quantity sold by it. Thus TR is an upward sloping curve under perfect competition. It is a straight line as PRICE is constant.


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