Anchal was studying for her economic examination. She wanted to know about the TR curve in a perfect competition. She went to her elder sister to ask about it. Her elder sister said: a. The TR curve passes through point O, that is, origin. b. TR curve is an upward rising straight line. c. The slope of the TR curve is Q, i.e. quantity. Which of the statement made by her are correct?

a, b,c a, b a, c b, c

a, b

When the output is zero, the total revenue of the firm is also zero. Therefore, the TR curve passes through point O. Since P(price) is constant in a perfectly competitive market, this means that the TR curve is an upward rising straight line. And the slope of the TR Curve is P, that is, Price.