{"id":59088,"date":"2024-04-16T01:30:56","date_gmt":"2024-04-16T01:30:56","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=59088"},"modified":"2024-04-16T01:30:56","modified_gmt":"2024-04-16T01:30:56","slug":"under-conditions-of-perfect-competition-in-the-product-market","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/under-conditions-of-perfect-competition-in-the-product-market\/","title":{"rendered":"Under conditions of perfect competition in the product market"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a96efb52f1d2\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    &#8221;MRP                <\/div>\r\n                                                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    &#8221;MRP                <\/div>\r\n                                                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    &#8221;VMP                <\/div>\r\n                                                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    &#8221;None                <\/div>\r\n                                                                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: A. MRP = VMP.<\/p>\n<p>Marginal revenue product (MRP) is the additional revenue that a firm earns by employing one more unit of labor. Value marginal product (VMP) is the additional value that a firm creates by employing one more unit of labor.<\/p>\n<p>Under conditions of perfect competition in the product market, the firm is a price taker. This means that the firm cannot affect the market price of its product. The firm&#8217;s marginal revenue (MR) is equal to the market price (P).<\/p>\n<p>The firm&#8217;s MRP is equal to its VMP. This is because the firm can sell all of its output at the market price, so the marginal revenue from selling an additional unit of output is equal to the market price.<\/p>\n<p>Therefore, under conditions of perfect competition in the product market, MRP = VMP.<\/p>\n<p>Option B is incorrect because MRP is <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 <div 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MRP.<\/p>\n<p>Option D is incorrect because MRP = VMP.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Under conditions of perfect competition in the product market<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/under-conditions-of-perfect-competition-in-the-product-market\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Under 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