Why is total revenue of a competitive firm a straight line passing through origin?
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The total revenue curve for a firm in a perfectly competitive market is an upward sloping because the price or AR remains constant and MR is also equal to AR. ... The curve passes through the origin, which means that irrespective of what the price level is, if the output sold is zero, TR will also be zero.
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Why the Total Revenue curve of a competitive firm faces a straight line passing through origin? A competitive firm sells its output at. ... It passes through the origin because when sale is zero, TR is also zero
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