Question

Why is the marginal revenue curve for a business with market power below the firm's demand curve at any given level of output (beyond the first unit). Is this also true for a firm in a perfectly competitive market? 

   Why is the marginal revenue curve for a business with market power below the firm's demand curve at any given level of output (beyond the first unit). Is this also true for a firm in a perfectly competitive market?
Principles of Microeconomics
Principles of Microeconomics
Stevenson,… 1st Edition
Chapter 14, Problem 3 ↓

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Market power refers to the ability of a firm to influence the price of its product or service in the market. A firm with market power faces a downward-sloping demand curve, meaning that in order to sell more units, the firm must lower the price. This is in  Show more…

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Why is the marginal revenue curve for a business with market power below the firm's demand curve at any given level of output (beyond the first unit). Is this also true for a firm in a perfectly competitive market?
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