1.

What is the shape of marginal revenue curve and average revenue curve if the total revenue curve is a positively sloped straight line?

Answer»

MR curve will be a horizontal straight line parallel to X-axis because positively sloped straight line TR curve indicates that revenue from every additional unit sold (i.e. MR) remains same for every level of output.

When TR curve is a positively sloped straight line passing through the origin, MR curve will be a horizontal straight line parallel to X-axis.



Discussion

No Comment Found

Related InterviewSolutions