In perfect competition, TR increases at a constant rate as MR=AR=constant
But can we say that slope of TR = 1 ?????
Suppose MR=AR=10
Then TR at various levels of output (1 unit, 2 units, 3 units, 4 units....) is 10,20,30,40....
In this case slope of TR = 10 then how can the angle it makes with the X axis = 45 degrees????

Dear Vibhav,
Slope of a line denotes the rate of change in a line. Here, the rate of change is constant, i.e. the TR increases at a constant rate of 10 and therefore it is a straight 45 degree upward sloping line.
 

  • -1
What are you looking for?