Wages are to some extent, determined by the

Wages are to some extent, determined by the marginal productivity of labour. Marginal productivity of labour refers to the additional output that an additional unit of labour adds to the total production. When the marginal productivity of labour increases, it leads to an increase in wages. Employers are willing to pay higher wages when the workers are more productive and efficient, and this increased productivity leads to increased profits for the firm. Therefore, the level of wages paid to workers is closely related to their productivity, with higher productivity resulting in higher wages.