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