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Question
Total revenue is a straight positively sloping line, having a constant slope, from origin under:
Total revenue is a straight positively sloping line, having a constant slope, from origin under:
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Solution
The correct option is A perfect competition
At zero level of sales, total revenue is zero. Therefore, total revenue curve starts from origin. As sales increase, total revenue also increases. The total revenue is an upward sloping straight line through the origin at a constant rate in perfect competition because the price of commodity remains constant for each level of output for a price taking firm.
At zero level of sales, total revenue is zero. Therefore, total revenue curve starts from origin. As sales increase, total revenue also increases. The total revenue is an upward sloping straight line through the origin at a constant rate in perfect competition because the price of commodity remains constant for each level of output for a price taking firm.
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