Question

Which of these statements is
true?
In perfect competition, the total revenue
curve is linear in nature
In imperfect competition, the total
revenue curve is linear in nature
In imperfect market, there are no
restrictions on entry/exit
in perfectly competitive market,
information is hard to get
Submit​

Answer 1

Answer:

in perfect compansation

Answer 2

Of the given statements first statement i.e. In perfect competition, the total revenue curve is linear in nature, is true.

1. In perfect competition all the firms have complete information of the market. Therefore, no one particular firm can raise its revenue in the market. if one firm tries to raise its revenue other firms will immediately take measures to balance out the extra revenue of that firm. So all the firms will have same revenue and total revenue curve will be linear.
2. 2nd is not true. In imperfect competition not all the firms have complete information of the market. Therefore, a single firm or few firms can take advantage of having more market information in order to raise the revenue. Thus they have inverse u shaped tr curve.
3. 3rd is not true because there are restrictions in the imperfect market.
4. 4th is not true because market information is easily available in a perfectly competitive market.