An increase in the price of grape juice causes an increase in the marginal revenue product of labor used to produce grape juice.

Question

Quizplus · Accepted Answer

An increase in the price of grape juice would cause an increase in the demand for labor to produce more grape juice. This, in turn, would increase the marginal revenue product of labor, which is the additional revenue generated by each additional unit of labor.

An Increase in the Price of Grape Juice Causes an Increase