Why is the total revenue curve of a price taking firm an upward slopin – InterviewSolution

1.	Why is the total revenue curve of a price taking firm an upward sloping straight line? Whdoes the curve pass through the origin ?
Answer» At zero level of sales, Total Revenue is zero. Therefore, Total Revenue curve starts from origin. As sales increase,TotalRevenuealso increases. The Total Revenue is an upwardslopingstraight line through the origin at a constant rate because the price of commodity remains constant for each level of output for a price taking firm (perfect competition).

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