Asked by
Desiree Lopez
on Oct 08, 2024
Verified
The fact that a purely competitive firm's total revenue curve is linear and upsloping to the right implies that:
A) product price increases as output increases.
B) product price decreases as output increases.
C) product price is constant at all levels of output.
D) marginal revenue declines as more output is produced.
Total Revenue Curve
A graphical representation showing how a firm’s total revenue changes with variations in the quantity of product sold.
Linear
A relationship or function that can be graphically represented in two dimensions as a straight line, implying a constant rate of change.
- Identify the attributes of demand and marginal revenue trajectories for firms in complete competition.
Verified Answer
AH
Learning Objectives
- Identify the attributes of demand and marginal revenue trajectories for firms in complete competition.