The acronym "MVP" stands for Minimum Viable Product in product development. An MVP is a version of a new product that includes only the essential features necessary to address the needs of early adopters and gather feedback. This approach allows companies to validate their ideas with minimal resources and time commitment before full-scale production. By focusing on core functionalities, businesses can quickly obtain valuable insights into customer preferences and pain points, helping them iterate and improve the product based on real user data, ultimately leading to better market fit and reduced risks.