For a resource in a perfectly competitive market, marginal revenue product is equal to the product price.

Name: For a resource in a perfectly competitive market, marginal revenue product is equal to the product price.
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Question

Quizplus · Accepted Answer

In a perfectly competitive market, the marginal revenue product (MRP) is equal to the marginal product of the resource times the price of the output, not directly to the product price. The product price influences MRP but they are not equal.

For a Resource in a Perfectly Competitive Market, Marginal Revenue