Question

Why is the TR curve of a price taking firm an upward sloping straight line ? Why does the curve pass through the origin ??


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Answer 1

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.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.

Answer 2

because the price or AR remains constant and MR is also equal to AR and which implies that no matter what the price level is, if the output sold is zero, TR will also be zero.