In the graph, the firm sells at ₹10 a unit. What is the slope of its TR line? A straight TR line from the origin: TR is ₹20 at 2 units, ₹40 at 4 units (point A) and ₹60 at 6 units.

In the graph, the firm sells at ₹10 a unit.

Question 24

MediumOriginal question

In the graph, the firm sells at ₹10 a unit. What is the slope of its TR line?

A straight TR line from the origin: TR is ₹20 at 2 units, ₹40 at 4 units (point A) and ₹60 at 6 units.

0Correct answerYour answer40Correct answerYour answer10, equal to the priceCorrect answerYour answerIt changes along the lineCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

TR = 10 × q: each extra unit adds ₹10.
The slope of TR is MR, which equals the price, so TR is a straight line from the origin with slope 10.

Worth noting

40 is the TR at point A, not the slope.

Concept: TR line of a price taker
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsRevenue at a price set by the market

Practise this chapter →

Ten questions from Revenue & Producer's Equilibrium, at your own pace.

Practise this chapter →

Ten questions from Revenue & Producer's Equilibrium, at your own pace.

In the graph, the firm sells at ₹10 a unit.

Question 24

Explanation