1. Pound/dollar currency pair's value changed from 1.18/$ to 1.33/$. a. Is this an appreciation or depreciation for dollar? Why? b. By what percentage did currency pair's value change? (15 pts) AAR ECO4224 - Industrial Organization Take-home project Instructions: ./ want you to submit a report between 5 to 10 pages in this take-home project. You should submit your report in .pdf or .docx format to Itslearning (ItsLearning > EC04224 >Resources > Takehome project > Turnitin submission) Please submit your project before the due date - April 27th at midnight Show all your work, including calculations. The use of resources from the Internet is strictly forbidden. All students should note that the work submitted must be entirely original and individual. Evidence of collaboration between students will be probed very attentively, and all copies showing such evidence will receive a zero mark: further measures will be taken The questions are as follows: 1. Consider a hypothetical firm operating in a hypothetical market that you imagine. Name your firm as "A," the others as "B", "C", "D".... 2. Measure the market structure by assigning hypothetical market shares to your firm and rival firms. Explain the concentration level in the market. 3. Measure the industry-wide market power by assigning hypothetical price and cost information (please keep the market share information on question #2). 4. Write down the cost function of your firm. Derive, average, and marginal costs (please check that marginal cost is the same in question #3). 5. Does your firm exploit economies of scale or economies of scope or both? Show how by relying on your cost function in question #4? 6. (For this question, assume that your firm is a monopoly) Do you make price discrimination? Which type? Is it profitable rather than applying a uniform price? Please show by defining hypothetical demand functions (keep your cost function on question #4). 7. (For this question, assume that your firm is a monopoly) What type of product differentiation do you apply? Vertical or horizontal? Please explain on a hypothetical demand curve (keep your cost function on question #4, develop it in case of vertical differentiation)