Under perfect competition, no matter how much output is produced, the total revenue curve is a:
A) positively sloped line.
B) negatively sloped line.
C) horizontal straight line.
D) U-shaped curve.

Question

Quizplus · Accepted Answer

Under perfect competition, the price remains constant regardless of the quantity produced, so total revenue increases linearly with output, resulting in a positively sloped line.

Under Perfect Competition, No Matter How Much Output Is Produced