Answer :

a) If the total revenue curve is a positively sloped straight line passing through the origin, then the slope of demand curve will be horizontal line parallel to X axis. It indicates that the price remains constant at all level of output.



b) If the total revenue curve is a horizontal line, then the demand curve will be downward sloping. The firms can increase their volume by decreasing price due to which average revenue will fall with increase in sales.



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