The Total Revenue Curve for a Perfectly Competitive Firm

question 37

Multiple Choice

The total revenue curve for a perfectly competitive firm

• A)is a vertical line intersecting the horizontal axis
• B)is a horizontal line intersecting the vertical axis
• C)starts part way up the vertical axis, then slopes upward in a backwards-S curve
• D)is a straight line starting from the origin and sloping upward
• E)starts at the origin, sloping upward at first and then sloping downward

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Definitions:

Utility

A measure of satisfaction or happiness that consumers receive from consuming goods or services.

Income

The money that an individual or business receives in exchange for providing a good or service or through investing capital.

Risk-neutral

Refers to individuals or entities that are indifferent between choices with varying levels of risk, focusing solely on the possible outcomes' expected values.

Risk-loving

A preference or inclination for taking on risks where the potential for gains outweighs the potential losses, as opposed to risk-aversion.