Mark Frost grows apples in a perfectly competitive market.If we drew a line in a graph that illustrates Mark's total revenue from selling apples, it would be
A)a straight, upward-sloping line.
B)a horizontal line.
C)a straight, downward-sloping line.
D)a curve that is negatively sloped at low levels of output and positively sloped at higher levels of output.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the total revenue line is a straight, upward-sloping line because total revenue increases at a constant rate as output increases, given the constant market price.

Mark Frost Grows Apples in a Perfectly Competitive Market