What is the link between marginal revenue product and wages?

May 5th, 2015
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Please answer question in paragraph form What is the link between marginal revenue product and wages? Due to there being discrepancies between the productivity and resource offerings (i.e., education, skills, experience) in labor markets, is it justified for one employee with a higher marginal revenue product to earn a higher wage than an employee with a lower marginal revenue product? Does this notion of marginal revenue product and wages conflict with minimum wage laws?

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The link betweenmarginal revenue product and wages can be clear by that the firm maximizes benefits at that level of info of work at which the pay rate is equivalent to the marginal income result of that level of work information. It is seen that at every point on the marginal income item truly demonstrates that the firm is willing to purchase that amount of work at a compensation equivalent to the MRP at that amount of work. The main thing regard MRP as equivalent to wage, you get the MRP bend as only the amount of work requested at diverse pay rates. So, the MRP bend is only the dam end

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