Which of the following may cause the MRP of a resource to rise?

Question

Quizplus · Accepted Answer

All of the options listed can cause the Marginal Revenue Product (MRP) of a resource to rise. An increase in demand for the final goods increases the value of the output produced by the resource, raising its MRP. A rise in the price of the final goods directly increases the revenue generated per unit of output, thus increasing the MRP. An increase in the resource's productivity means more output can be produced from the same amount of resource, effectively raising its MRP by generating more revenue.

Which of the Following May Cause the MRP of a Resource