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    Exam 17: The Labor Market and the Distribution of Income
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    Alan and Bob Have the Same Marginal Productivity of Labor
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Alan and Bob Have the Same Marginal Productivity of Labor

Question 38

Question 38

Essay

Alan and Bob have the same marginal productivity of labor.Yet,Alan's wage rate is much higher than Bob's.How can this be?

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Workers are paid according to marginal r...

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