In a graph with output on the horizontal axis and total revenue on the vertical axis,what is the shape of the total revenue curve for a perfectly competitive seller?
A) U-shaped
B) Inverted U-shaped
C) A horizontal line
D) A ray from the origin

Question

Quizplus · Accepted Answer

In perfect competition, the total revenue curve is a ray from the origin because the price is constant, so total revenue increases linearly with output.

In a Graph with Output on the Horizontal Axis and Total