The total revenue curve for a perfectly competitive firm will be a straight line with positive slope.

Question

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In a perfectly competitive market, the firm is a price taker, meaning it sells its product at the market price. Therefore, as the quantity sold increases, total revenue increases linearly, resulting in a straight line with a positive slope on a graph where the x-axis represents quantity and the y-axis represents total revenue.

The Total Revenue Curve for a Perfectly Competitive Firm Will