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Which of the Following Statements Is True

Question 11

Multiple Choice

Which of the following statements is true?


A) A per tonne royalty may increase the level of mineral output and result in government revenues which are too low when prices are low.
B) A per tonne royalty may reduce the level of mineral output and result in government revenues which are too high when prices are high.
C) A per tonne royalty may reduce the level of mineral output and result in government revenues which are too low when prices are low.
D) A per tonne royalty may reduce the level of mineral output and force some firms to exit the industry.

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