For any given quantity of labour, an increase in price will cause the marginal product of labour to increase.

Question

Quizplus · Accepted Answer

An increase in price does not directly affect the productivity of labour. It may lead to an increase in the quantity of labour supplied or changes in technology or techniques of production, which may affect the marginal product of labour. However, the relationship between price and marginal product of labour is not straightforward and depends on various factors.

For Any Given Quantity of Labour, an Increase in Price