Refer to the diagram above. Which of the following explains the slope of the total revenue curve illustrated in this graph?
A. total revenue shown as a straight line sloping up indicates a perfectly competitive firm
B. the slope of the total revenue curve is determined by the price of the goods produced
C. at higher levels of output, diminishing returns will cause total cost to slope downward steeply
D. the slope of the total revenue curve is explained by both a and b above.
Answer:D
Refer to the diagram above. Which of the following explains the slope of the total revenue curve illustrated in this graph?
A. total revenue shown as a straight line sloping up indicates a perfectly competitive firm B. the slope of the total revenue curve is determined by the price of the goods produced C. at higher levels of output, diminishing returns will cause total cost to slope downward steeply D. the slope of the total revenue curve is explained by both a and b above.
Explanation: 32.