In a competitive labor market, if the price of the final product increases while all other factors remain constant, how does this affect the marginal revenue product of labor?

In a competitive labor market, the marginal revenue product of labor refers to the additional revenue generated by hiring one more worker. When the price of the final product increases, the revenue from selling each unit also rises. This means that each worker contributes more to the overall revenue because they help produce more of the product that is now more valuable. For example, if a factory makes shoes and the price per pair increases, each worker produces shoes that are worth more money, thus increasing their marginal revenue product. Therefore, as the price increases, the marginal revenue product of labor also increases, encouraging firms to hire more workers to take advantage of the higher earnings.