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We Should Not Tax Windfall Profits of U

Question 73

Multiple Choice

We should not tax windfall profits of U.S. oil refineries because


A) taxes would discourage future investment in capacity.
B) monopoly profits are necessary to motivate continued adaptation in production to an ever changing industry.
C) political decisions on taxation are driven by political benefits rather than market outcomes.
D) All of the above are possible explanations.

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