Under conditions of perfect competition in the product market
A. MRP = VMP
B. MRP > VMP
C. VMP > MRP
D. None of the above
Answer: Option A
Solution(By Examveda Team)Under conditions of perfect competition in the product market MRP = VMP. Under the assumption of perfect competition a firm employs a factor up to that number at which the price of the factor is just equal to the value of the marginal product (=MRP of the factor).
A. Capital loss
B. Production cost
C. Dead-weight loss
C. Heckscher & Ohlin
A. On a linear demand curve, all the five forms of elasticity can be depicted
B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.
C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.
D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.
C. Remain the same
D. Become zero