Rocchetta Industries manufactures and supplies bottled water in Mexico.As a result of a contamination of water supplies at many of Mexico's resort communities, the demand for bottled water has increased.According to the information provided, when the labour market adjusts to its new equilibrium we would expect the:

Question

Quizplus · Accepted Answer

The value of the marginal product of labour increases when demand for the final product (in this case, bottled water) increases. This is because the value of the marginal product of labour is directly related to the product's price, which tends to increase with higher demand.

Rocchetta Industries Manufactures and Supplies Bottled Water in Mexico