"short" answers, 11 marks

Royalties/Taxes. What are the general principles involved in setting economically sensible royalties? What are the specific goals of the sellers? The buyers? What are the three market structures we see, and what are the potential benefits and problems with each? What problems can lead to imperfect collection of royalties? How do royalties differ from taxes? What mechanisms can be used by corporations to reduce royalties and/or taxes? What did your instructor hope would happen with respect to corporate taxes, worldwide?