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

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This is known as the Law of Diminishing Marginal Returns, which states that as the quantity of a factor of production (such as labour) increases while the quantity of other inputs is held constant, the marginal product of that factor of production will eventually decrease. However, if the price of that factor of production (such as the wage rate for labour) increases, then the value of the marginal product of that factor will increase, as firms are willing to pay more for each unit of output produced by that factor.

For Any Given Quantity of Labour, an Increase in Price