One reason why individuals with greater ability often receive higher wage rates is that they
A)face discrimination
B)have low marginal products
C)have high marginal revenue products
D)face diminishing marginal returns
E)often are employed in industries experiencing economies of scale

Question

Quizplus · Accepted Answer

Individuals with greater ability often have high marginal revenue products, meaning they can generate more revenue for the firm through their work. As a result, their employers are willing to pay them a higher wage rate to retain their services.

One Reason Why Individuals with Greater Ability Often Receive Higher