In answering the question, assume a graph in which dollars are measured on the vertical axis and output on the horizontal axis.For a purely competitive firm, total revenue graphs as a
A)straight, upsloping line.
B)straight line, parallel to the vertical axis.
C)straight line, parallel to the horizontal axis.
D)straight, downsloping line.

Question

Quizplus · Accepted Answer

Total revenue for a purely competitive firm is calculated as the price per unit times the quantity sold. Since price remains constant regardless of the quantity sold in a purely competitive market, the total revenue line will slope upwards at a constant rate, indicating a direct proportionality between output and total revenue.

In Answering the Question, Assume a Graph in Which Dollars