Mineral tax will live shorter. On top of that tax revenues for the government would be low, too. That leads to a Laffer curve-shaped function of tax revenue for the government, in which the “optimal level of taxation” is somewhere in the middle. Any mineral tax must be neutral. Neutral is defined as maintaining incentives for investors to exploit minerals. Therefore, the revenues must exceed the costs. Furthermore, the government must be able to rely on the amount of tax money it receives, therefore, the tax imposed must be as certain and as steady as possible. Often, governments decide to use a
Optimal foraging theory shown as a curve of energy gain per time spent in a patch (Figure 3). The curve starts off with a steep slope and gradually levels off as prey becomes harder to find. Another important cost to consider is the traveling time between different patches and the nesting site. An animal loses foraging time while it travels and expends energy through its locomotion. In this model, the currency being optimized is usually net energy gain per unit time. The constraints are the travel time and the shape of the curve of diminishing returns. Graphically, the currency (net energy gain per