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प्रश्न
Why is the total revenue curve of a price-taking firm an upward-sloping straight line? Why does the curve pass through the origin?
उत्तर
The total revenue curve for a firm in a perfectly competitive market is an upward sloping curve because the price or AR remains constant and MR is also equal to AR. Thus, TR can only be influenced by altering the output sold, as the price remains constant. The increase in TR is in the same proportion as the increase in the output sold.
The curve passes through the origin, which implies that no matter what the price level is, if the output sold is zero, TR will also be zero.
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संबंधित प्रश्न
How are the total revenue of a firm, market price, and the quantity sold by that firm related to each other?
What is the price line?
What is the relation between market price and average revenue of a price taking firm?
What is the relation between market price and marginal revenue of a price-taking firm?
Calculate the total revenue, marginal revenue and average revenue schedules in the following table. Market price of each unit of the good is Rs 10.
|
Quantity Sold |
TR |
MR |
AR |
|
0 |
|||
|
1 |
|||
|
2 |
|||
|
3 |
|||
|
4 |
|||
|
5 |
|||
|
6 |
