Figure 12-2

-Refer to Figure 12-2.Why is the total revenue curve a ray from the origin?
A)because revenue increases at an increasing rate
B)because revenue increases at a decreasing rate
C)because the firm can sell its product at a constant price
D)because the firm must lower its price to sell more

Question

Figure 12-2
 
-Refer to Figure 12-2.Why is the total revenue curve a ray from the origin?
A)because revenue increases at an increasing rate 
B)because revenue increases at a decreasing rate 
C)because the firm can sell its product at a constant price 
D)because the firm must lower its price to sell more

Quizplus · Accepted Answer

The total revenue curve is a ray from the origin because the firm can sell its product at a constant price. This means that the quantity sold and the total revenue earned are directly proportional, and as a result, the graph forms a straight line passing through the origin.

Figure 12-2 -Refer to Figure 12-2.Why Is the Total Revenue Curve a Total