Unlike the curve for a monopolist, the total revenue curve for a single perfect competitor would be a straight line rising to the right from the origin.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the firm is a price taker and can only sell its output at the prevailing market price. Therefore, the total revenue received by the firm is proportional to the quantity of output it produces. This results in a straight line rising to the right from the origin on the graph of total revenue versus quantity.

Unlike the Curve for a Monopolist, the Total Revenue Curve