Scenario 18-4
Aquaclena 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.
-Refer to Scenario 18-4.As a result of the contamination,what would we expect would happen to the value of the marginal product for Aquaclena's workers

Question

Quizplus · Accepted Answer

The value of the marginal product for Aquaclena's workers would rise since the demand for bottled water has increased and therefore, the price of bottled water has also increased. This would create an incentive for workers to increase their output, leading to a higher value for their marginal product.

Scenario 18-4 Aquaclena Manufactures and Supplies Bottled Water in Mexico.As a Result