The total revenue for a perfectly competitive firm is a(n)
A) upward-sloping straight line
B) horizontal line
C) upward-sloping curve that increases at a decreasing rate
D) upward-sloping curve that increases at an increasing rate

Question

Quizplus · Accepted Answer

In a perfectly competitive market, a firm is a price taker, meaning it can sell any quantity of goods at the market price. Therefore, the total revenue, which is price times quantity, increases linearly with quantity, resulting in an upward-sloping straight line.

The Total Revenue for a Perfectly Competitive Firm Is A(n)