In a graph for a firm in pure competition with the quantity of output measured on the horizontal axis, the total revenue curve is
A)downward-sloping.
B)horizontal.
C)vertical.
D)upward-sloping.

Question

Quizplus · Accepted Answer

In pure competition, the firm is a price taker, meaning it sells its product at the market price regardless of the quantity produced. Therefore, as the quantity of output increases, total revenue increases linearly, making the total revenue curve upward-sloping.

In a Graph for a Firm in Pure Competition with the Quantity