For a purely competitive firm, total revenue
A)is price times quantity sold.
B)increases by a constant absolute amount as output expands.
C)graphs as a straight upsloping line from the origin.
D)has all of these characteristics.

Question

Quizplus · Accepted Answer

Total revenue for a purely competitive firm is indeed price times quantity sold, increases by a constant amount as output expands (since price remains constant for the firm), and graphs as a straight line from the origin, reflecting a direct proportionality between revenue and quantity sold.

For a Purely Competitive Firm, Total Revenue