Explain briefly why U.S. Steel prefers to own its mines, enrichment facilities, and ore carriers
Transaction costs, uncertainty, and risks of opportunism can also explain why U.S. Steel owns its mines, enrichment facilities, and ore carriers. First, blast furnace owners also face volumetric risk in iron ore and coke. Second, a scarcity of alternative producers who can supply U.S. Steel's desired volumes makes the ore market thin, with less predictable prices and heightened deliverability risk. Third, owning an enrichment facility allows U.S. Steel to ensure itself a supply of taconite with specifications best suited to its operations. It might also be easier to coordinate operations of the mine and enrichment plant than if they have different owners. Fourth, the costs of mining, loading, and shipping ore are lower if ships and docking facilities are customized.
You might also like to view...
Refer to Figure 5-13. The gasoline tax raises the price paid by consumers by ________ per gallon
A) $0.75 B) $1.25 C) $1.75 D) $2.00
Explain an additional disadvantage for a country undergoing dollarization compared to a currency board or other exchange-rate targeting regimes
What will be an ideal response?
Problems caused by stochastic trends include all of the following with the exception of
A) the estimator of an AR(1) is biased towards zero if it's true value is one. B) the model can no longer be estimated by OLS. C) t-statistics on regression coefficients can have a nonnormal distribution, even in large samples. D) the presence of spurious regression..
Utilitarians believe that the proper goal of the government is to maximize the sum of the utilities of everyone in society
a. True b. False Indicate whether the statement is true or false