In a perfectly competitive market,

The correct answer is Option 1: Marginal Revenue Product of Labor (MRPL) is equal to Value of the Marginal Product of Labor (VMPL)

Explanation:

• Marginal Revenue Product of Labor (MRPL) is the additional revenue a firm earns by hiring one more unit of labor.
• Value of the Marginal Product of Labor (VMPL) is the marginal product of labor (MPL) multiplied by the price of the good produced by the labor.
• In a perfectly competitive market, the firm is a price taker, meaning that it sells output at a constant market price.

Since:

MRPL=MPL×MR

VMPL =MPL x P

And in perfect competition, Marginal Revenue (MR) = Price (P), it follows that:

MRPL=VMPL

Thus, in a perfectly competitive market, MRPL is equal to VMPL.