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

Question

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An increase in price of grape juice would lead to an increased demand for grape juice, which in turn would increase the marginal revenue product of labor used to produce grape juice. This is because the higher price motivates producers to increase production, which requires more labor. As a result, the value of each unit of labor increases, leading to an increase in the marginal revenue product of labor.

An Increase in the Price of Grape Juice Causes an Increase