What is the correct answer?


In case of perfect competition, TR curve rises at a:

A. Constant rate

B. Decreasing rate

C. Increasing rate

D. None of the above

Correct Answer :

A. Constant rate

The TR curve in perfect competition increases at constant rate b/c price remains constant at given period and when we get total revenue(TR) by multiplying each unit of output by price(p) then each next unit shows equal increase in TR. Because of rising at a constant rate , the slope of TR curve is also constant in perfect competition}

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