Assertion (A): A price-taking firm's TR curve is a straight line through the origin.
Reason (R): A price-taking firm's MR is constant and equal to the price.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Both are true, and R explains A: a constant slope (MR) from zero revenue at zero output gives a straight line through the origin.

Concept: Straight TR line
Typical timeTypical: 100 s
Your timeYours: —

The rule this testsRevenue at a price set by the market

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Assertion (A): A price-taking firm's TR curve is a straight line through the origin.Reason (R): A price-taking firm's MR is constant and equal to the price.

Explanation

Assertion (A): A price-taking firm's TR curve is a straight line through the origin.
Reason (R): A price-taking firm's MR is constant and equal to the price.