to survive?” Can you offer an answer based on what was
discussed in this chapter?
12. Using the concepts of transfer earnings and economic rent, can
you derive a form of taxation—of the earnings by oil companies,
for example—that would generate tax revenue but not influence
the companies’ supply decisions? Is your approach consistent
with that followed by Canada’s provincial governments when
they collect royalties on natural resource revenues?
sean pound
(Sean Pound)
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