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Question
The slope of the Total Revenue equals ______
Options
Average Revenue
Marginal Revenue
Average cost
Marginal Cost
MCQ
Fill in the Blanks
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Solution
The slope of the Total Revenue equals Marginal Revenue.
Explanation:
The change in total revenue divided by an increase in one unit of output is defined as marginal revenue. A TR curve is a straight line that radiates from the origin. Its slope equals MR, which equals the market price and AR in perfect competition.
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