As output rises,the MRP of an imperfect competitor will _____ that of a perfect competitor.

Question

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As output rises, the MRP (marginal revenue product) of an imperfect competitor will fall faster than that of a perfect competitor. This is because imperfect competitors have some degree of market power and can raise prices, but as they increase output, they face diminishing returns to scale, leading to a larger decrease in MRP compared to perfect competitors who face constant returns to scale.

As Output Rises,the MRP of an Imperfect Competitor Will _____