A Minimum Viable Product (MVP) is a basic version of a product that includes only the essential features needed to satisfy early users. The goal of an MVP is to test a product idea in the market with minimal resources, allowing developers to gather feedback and learn about user preferences. This approach helps in reducing development costs and time. By launching an MVP, companies can quickly validate their assumptions about the product and make informed decisions for future improvements. This iterative process is often used in the startup world, where rapid adaptation to user needs is crucial for success.