The TR curve is a . (2024)

FAQs

The TR curve is a .? ›

The correct option is A. straight line passing through the origin. At zero output, TR=0. And the slope of the TR curve is constant and is equal to price. Hence, the TR curve is a straight line passing through the origin.

The shape of TR curve in monopoly is hump shaped.

(ii) When TR curve is a horizontal straight line, then MR is zero. Therefore, MR curve is also a horizontal straight line and coincides with the output-axis.

For a price-taking firm, AR is constant. In case AR is constant, MR is also constant which implies that TR increases at a constant, positive rate. Hence, TR forms a straight line sloping upward.

The slope of the TR curve is MR or marginal revenue.

TR curve under perfect competition is a straight line, sloping upward from the origin.

When the market is perfectly competitive, the price does not vary. In fact, the price is the slope of the TR curve. Thus the TR curve is a straight line with positive slope.

(ii) When TR curve is a horizontal striaght line, MR will be zero. It happens because horizontal TR indicates that TR remains same at levels of output. It is possible only when revenue from additional unit sold (i.e. MR) is zero. MR curve coincides with X-axis.

Horizontal curves are those that change the alignment or direction of the road (as opposed to vertical curves, which change the slope). More than 25 percent of fatal crashes are associated with a horizontal curve, and the vast majority of these crashes are roadway departures.

Answer and Explanation: A horizontal aggregate supply curve means producers will not supply goods at a lower price anymore. Any government stimulus or growth in the economy will just increase output. This means the economy has a lot of productive capacity left unutilized.

Why is TR curve 45 degree? ›

The 45-degree line is a line of reference and shows all those points where aggregate expenditure and output are equal. It indicates that vertical axis measurement is equal to horizontal axis measurement. A 45-degree line represents the aggregate supply curve drawn from the origin. Was this answer helpful?

The supply curve is upward sloping because as price increases, suppliers can justify producing at higher marginal costs as long as MC < P.

TR falls when MR is negative.

If the full revenue curve is a positively sloped direct line passing via the beginning, then the slope of the demand curve or common revenue curve can be a horizontal line parallel to the x-axis. This takes place while expenses are regular at all stages of output.

Total revenue is a straight positively sloping line, having a constant slope, from origin under: perfect competition. oligopoly.

The slope of a line is a measure of its steepness. Mathematically, slope is calculated as "rise over run" (change in y divided by change in x).

The slope of a horizontal line is actually 0. It never rises (or falls), so if we were to find the rise/run, we'd get 0/run. 0 divided by anything is still equal to 0, and therefore, our horizontal line's slope is 0.

A horizontal line on a distance vs. time graph indicates that he object is at rest (not moving). You can show the motion of an object on a line graph in which you plot distance versus time.

Total fixed cost curve depicts the relation between the total fixed cost of production and the level of output while other things being constant. Since total fixed costs are fixed, the curve representing it, is a horizontal line.

The total fixed cost curve will always be a horizontal line because the fixed cost is not dependent on any factors and is always constant. The fixed cost remains the same and does not change when the total number of output changes. Therefore the total fixed cost curve will always remain a horizontal line.