Problem
In May 2010 an oil leak erupted from an offshore drilling platform in the Gulf of Mexico. The devastating effects of this leak prompted the Obama administration to encourage more strict regulations for this type of oil extraction.
a) Discuss the effects of such regulations on the user cost of capital.
b) Explain the effect of such regulations on the future desired level of capital stock and investment in this industry.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.