Two workers are employed in the same job by the same firm; however, they are paid different wage rates. This could be explained by differences in

A) the income effect
B) the price of the firm's output
C) their marginal products due to differences in ability
D) working conditions
E) risk

Marginal Products

The addition to total output due to the employment of one more unit of a specific factor of production, keeping all other factors constant.

Wage Rates

The fixed amount of compensation or payment given to employees for their services, typically expressed per hour or per unit of work.

Income Effect

The change in an individual's or economy's purchasing power due to a change in real income.