Which of the following events could increase the demand for labor? a. A decrease in output price b. A decrease in the amount of capital available for workers to use c. An increase in the marginal productivity of workers

In this case, the answer would be option c. or An increase in the marginal productivity of workers.

Explanation:

An increase in the marginal productivity of labor implies that the additional or incremental output or productivity obtained by employing one more unit of labor in the production of any good or service has also increased. Alternatively, a higher marginal productivity of labor also implies that any firm or company can now obtain more output or production level for per unit of labor employed or used in the production process which can be sold to the consumers or buyers to generate higher incremental or additional revenue. Therefore, higher marginal productivity of labor can also potentially increase the marginal revenue attributed to labor input. In other words, the additional or incremental revenue that a firm or company can earn by selling one more unit of output can also increase due to higher marginal productivity of labor. Hence, to take advantage of potentially higher revenue generation, the labor demand would increase following an increase in the marginal productivity of labor.