Whether marginal revenue is constant or decreasing depends on

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Marginal revenue can vary depending on the market structure in which a firm operates. In perfectly competitive markets, marginal revenue remains constant because firms are price takers and sell their goods at the market price. However, in imperfectly competitive markets (e.g., monopolistic competition, oligopoly, monopoly), firms face downward-sloping demand curves. This means that to sell additional units, they must lower the price, which causes marginal revenue to decrease as output increases. Therefore, whether a firm faces competition significantly influences whether its marginal revenue is constant or decreasing.

Whether Marginal Revenue Is Constant or Decreasing Depends on