The graph of the total revenue schedule of a perfectly competitive firm is a downward-sloping curve because the firm sells additional units of output at a falling price.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the firm is a price taker, meaning it sells each unit of output at the market price, which does not change with the quantity of output the firm sells. Therefore, the total revenue schedule of a perfectly competitive firm is a straight line originating from the origin, indicating a constant price per unit sold.

The Graph of the Total Revenue Schedule of a Perfectly