What would be the shape of the demand curve so that the total revenue curve is

(a) a positively sloped straight line passing through the origin?

(b) a horizontal line?

Open in App

Solution

(a) If the total revenue curve is a positively sloped straight line passing through the origin, then the slope of the demand curve will be a horizontal line parallel to the x-axis.

(b) If the total revenue curve is a horizontal line, then the demand curve will be downward sloping.

Suggest Corrections

Similar questions

Comment on the shape of the MR curve in case the TR curve is a

(i) positively sloped straight line, passing through the origin

(ii) horizontal straight line.

Why is the total revenue curve of a price-taking firm an upward sloping straight line? Why does the curve pass through the origin?

Join BYJU'S Learning Program