PRC-3 · Chapter 12 · Question 67 of 69
On a firm's graph, the Total Revenue (TR) curve will be a straight, positively sloped line starting directly from the origin only when:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Each additional unit of output sold generates the exact same marginal revenue (Perfect Competition)
Explanation
Under perfect competition, price is fixed. Selling one more unit always brings in the same constant price, causing Total Revenue to rise at a perfectly straight, constant rate.
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