a. Explain how it is possible that the mine workers are being paid less than the wage
Question:
a. Explain how it is possible that the mine workers are being paid less than the wage that would be paid in a competitive labor market.
b. Explain how the Escondida miners’ union might be able to raise their wage rate.
Workers at BHP Billiton’s Escondida mine in Chile, the world’s largest copper mine, have been strengthened by new labor laws and are striking for higher pay. This strike and another at the world’s secondlargest mine in Indonesia have sent the price of copper to a 20-month high.
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a The possibility of mine workers being paid less than the wage that would be paid in a competitive labor market could be due to a variety of reasons ...View the full answer
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