Why is the Total Revenue curve of a price taking firm an upward sloping straight line? Why does the curve pass through the origin?
At zero level of sales, Total Revenue is zero. Therefore, Total Revenue curve starts from origin. As sales increase, Total Revenue also increases. The Total Revenue is an upward sloping straight line
through the origin at a constant rate because the price of commodity remains constant for each level of output for a price taking firm (perfect competition).
