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The Theory Of The Firm Under Perfect Competition
Question
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Why is the total revenue curve of a price-taking firm an upward-sloping straight line? Why does the curve pass through the origin?

Answer

TR increases as output increases. Moreover equation of TR = P × q is that of a straight line. That is why TR curve of a price-taking firm is an upward sloping straight line. When output is zero, TR of the firm is also zero. Therefore TR curve passes through the origin.

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Some More Questions From The Theory Of The Firm Under Perfect Competition Chapter

What is meant by monopolistic competition?

What are selling costs?

Define homogeneous product.

What is meant by differentiated product?

 Define perfect competition.

 Is the seller under perfect competition a price maker or a price taker? 

Define monopoly.  

Define market equilibrium. 

Can a seller under monopolistic competition influence the price?

Why under imperfect competition, MR is less than price?