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The total revenue curve for a perfectly competitive firm will be a straight line with positive slope.
Positive Slope
A mathematical depiction of a line on a graph indicating an increase in the variable on the y-axis as the variable on the x-axis increases.
Total Revenue Curve
A graphical representation that shows the relationship between the total revenue a firm receives from selling its product and the quantity of the product sold.
Perfectly Competitive Firm
A company that cannot control market prices and must therefore accept the prevailing market price for its products or services.
- Understand the characteristics of perfectly competitive markets.
- Comprehend the concept of marginal revenue and how it relates to a firm's pricing and output decisions.
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Learning Objectives
- Understand the characteristics of perfectly competitive markets.
- Comprehend the concept of marginal revenue and how it relates to a firm's pricing and output decisions.
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