(a)[12]
A very large company with a turnover of $99.3 billion paid its chief executive $10.9 million in 2011. At the same time, reports said that the company did not pay all of its employees what was considered to be a living wage. Use economic analysis to explain why wage rates can vary so widely.
(b)[13]
Discuss how this analysis could be modified if a trade union intervened in the wage determination process.