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For five years, an oil drilling company has operated profitably in the state of Alaska (the only place it operates). Last year, the state legislature instituted a flat annual tax of $100,000 on any company extracting oil (or natural gas) in Alaska. How would this tax affect the amount of oil the company extracts? Explain. Suppose instead the state imposes a wellhead tax—that is, oil companies must pay a tax of $2.00 on each barrel of oil extracted. How would this tax affect the amount of oil the company extracts? Explain.
Think of an emerging energy industry that has differential access to productive inputs. Is it likely that any of the three leading American companies in that industry can deve
Hemesia, a developed economy, has been experiencing low growth in output with a high rate of unemployment for more than a year. Geoffrey Miller and Arthur Davis, are discussin
Articulate an argument demonstrating the importance and centrality of HR departments in today's chaotic and competitive world. How can a weak HR department help bring a com
Identify an incentive conflict in your firm, or one you have read about, that reduced firm value. As part of your answer discuss whether or not one or more of the legs of the
You are evaluating two different silicon wafer milling machines. The Techron I costs $222,000, has a three-year life, and has pretax operating costs of $57,000 per year. For b
A credit card company wants your business. If you accept their offer and use their card, they will deposit 1% of your monetary transactions into a savings account that will ea
Assume capital (equipment) is fixed, and labor is the only variable input. Assume the wage is $200 per worker per day, you are employing 4 workers and AP with 4 workers is 80,
Consider a monopolistic firm that can produce any quantity of its product at a constant marginal cost equal to $20,000 and a fixed cost of $10 billion. Its products could be s
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