In answering the question,assume a graph in which dollars are measured on the vertical axis and output on the horizontal axis. Refer to the information.For a purely competitive firm,total revenue graphs as a:
A) straight,upsloping line.
B) straight line,parallel to the vertical axis.
C) straight line,parallel to the horizontal axis.
D) straight,downsloping line.

Question

Quizplus · Accepted Answer

Total revenue for a purely competitive firm is calculated as the price per unit times the quantity sold. Since price remains constant for a purely competitive firm regardless of the quantity sold, total revenue increases at a constant rate as output increases. This is represented graphically as a straight, upsloping line.

In Answering the Question,assume a Graph in Which Dollars Are