SELECT * FROM question_mgmt as q WHERE id=5548 AND status=1 SELECT id,question_no,question,chapter FROM question_mgmt as q WHERE courseId=3 AND subId=60 AND chapterId=611 and ex_no='1' AND status=1 ORDER BY CAST(question_no AS UNSIGNED) CBSE Free NCERT Solution of 12th micro-economics The Theory of the Firm under Perfect Competition why is the total revenue curve of a price taking f

Question:

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:

The total revenue curve for a firm in a perfectly competitive market is an upward sloping curve because the price or AR remains constant and MR is also equal to AR. Thus TR can only be influenced by altering the output sold as the price remains constant. The increase in TR is in the same proportion as the increase in the output sold. The curve passes through the origin which implies that no matter what the price level is if the output sold is zero TR will also be zero.


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