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What do you mean by conditions of perfect competition in the product market? I. MRP=VMP II. MRP > VMP III. VMP=MSP
Question

What do you mean by conditions of perfect competition in the product market?
I. MRP=VMP
II. MRP > VMP
III. VMP=MSP

A.

All I, II, and III

B.

Only II

C.

Only III

D.

Only I

Correct option is D


Under perfect competition, the marginal revenue product (MRP) equals the value of the marginal product (VMP), ensuring optimal resource allocation.

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