<Dl> <Dd> R ′ (q) = P (q) + P ′ (q) ⋅ q (\ displaystyle R' (q) = P (q) + P' (q) \ cdot q). </Dd> </Dl> <Dd> R ′ (q) = P (q) + P ′ (q) ⋅ q (\ displaystyle R' (q) = P (q) + P' (q) \ cdot q). </Dd> <P> For a firm facing perfect competition, price does not change with quantity sold (P ′ (q) = 0 (\ displaystyle P' (q) = 0)), so marginal revenue is equal to price . For a monopoly, the price decreases with quantity sold (P ′ (q) <0 (\ displaystyle P' (q) <0)), so marginal revenue is less than price (for positive q (\ displaystyle q)). </P> <P> The marginal revenue curve is affected by the same factors as the demand curve - changes in income, change in the prices of complements and substitutes, change in populations . These factors can cause the R curve to shift and rotate . </P>

When does marginal revenue equal the market price
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