Under conditions of perfect competition in the product market:

Name: Under conditions of perfect competition in the product market:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Under conditions of perfect competition in the product market, the Marginal Revenue Product (MRP) equals the Value of the Marginal Product (VMP). This is because the price of the product is constant for all units sold, making the additional revenue from selling one more unit (MRP) equal to the additional value created by that unit (VMP).

Under Conditions of Perfect Competition in the Product Market