Which of the following factors contributes to wage inequality based on marginal productivity theory?

Prepare for the Rutgers Introduction to Microeconomics Test. Study with comprehensive multiple-choice questions and detailed explanations. Master key economic concepts and excel in your exam!

Wage inequality based on marginal productivity theory is largely influenced by differences in the talent among workers. This theory posits that workers are paid based on the additional value they contribute to production, measured by their marginal productivity. Workers who possess greater skills, talents, or abilities can produce more or deliver higher quality work, leading to higher marginal productivity.

As a result, these more talented individuals are often able to command higher wages compared to their less talented counterparts. This wage difference reflects the varying contributions that different workers make to their employers’ output. In this context, talent encompasses various factors, including education, experience, and innate abilities, all of which can enhance a worker’s productivity in ways that significantly affect their earning potential.

While other factors such as worker benefits, job availability, and management effectiveness can play a role in influencing wages, they do not directly relate to the marginal productivity of individual workers in the same way that variations in talent do. This is why differences in talent among workers is the primary contributor to wage inequality according to this theory.

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