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In an effort to stop the migration of many of the automobile manufacturingfacilities from the Detroit area, Detroit’s city council is considering passing astatute that would give investment tax credit

In an effort to stop the migration of many of the automobile manufacturingfacilities from the Detroit area, Detroit’s city council is considering passing astatute that would give investment tax credits to auto manufacturers. Effectively,this would reduce auto manufacturers’ costs of using capital and high-techequipment in their production processes. On the evening of the vote, localunion officials voiced serious objections to this statute. Outline the basis ofthe argument most likely used by union officials. (Hint: Consider theimpact that the statute would have on auto manufacturers’ capital-to-laborratio.) As a representative for one of the automakers, how would youcounter the union officials’ argument?12. You were recently hired to replace the manager of the Roller Division at amajor conveyor-manufacturing firm, despite the manager’s strong externalsales record. Roller manufacturing is relatively simple, requiring only laborand a machine that cuts and crimps rollers. As you begin reviewing thecompany’s production information, you learn that labor is paid $8 per hourand the last worker hired produced 100 rollers per hour. The company rentsroller cutters and

Apr 30 2020 View more View Less

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