As per the NCERT glossary, the total revenue curve of a firm shows the relationship between:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → the firm’s total revenue and the firm’s output level
The total revenue curve puts output on the x-axis and total revenue on the y-axis. So it links the firm’s total revenue with its output.
The market price and output are linked by a different line, the price line.
NCERT (2026-27): Glossary: “Total revenue curve – shows the relationship between firm’s total revenue and firm’s output level.” Glossary: “Price line – is a horizontal straight line that shows the relationship between market price and a firm’s output level.” |