It is realistic to assume that a total revenue line will curve rather than be straight.

Question

Quizplus · Accepted Answer

It is realistic to assume that as the quantity of goods or services sold increases, the marginal revenue will decrease and a total revenue line will curve. This is due to the law of diminishing marginal returns, which states that as more units are produced, the marginal revenue from each additional unit will decrease. Therefore, it is expected that the total revenue line will curve when plotted on a graph.

It Is Realistic to Assume That a Total Revenue Line