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 Competitive firm and its total revenue curve

Total revenue (TR) is equal to price (P) times the quantity (Q):

TR = PQ 

Under perfect competition the firm is a price taker.  The price is therefore given and the firm's total revenue (TR) increases by a constant amount for each additional unit sold.

Total revenue is thus a straight line through the origin with a slope equal to the price (P). (more

A perfectly competitive firm cannot charge a price higher than the market price since it will lose all its customers to the competition.  Neither will a competitive firm charge a price lower than the market price since it can get the market price for its product.
If the price of a product is R100, the total revenue of competitive firm will increase by R500 if it sells 5 additional units.
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